Foreign investors increased their holdings in "emerging" Asian bond markets outside China by over $20 billion in the first half of 2023. (Source photos by AP and Reuters)

Indonesia, South Korea bonds benefit from China turmoil

Foreign investors favor Asian debt markets where currency gains are expected

ECHO WONG, Nikkei staff writer

July 17, 2023 06:00 JST

HONG KONG -- Global investors in Asian bonds are positioning themselves to benefit from potential U.S. dollar weakness, pouring funds into countries like Indonesia and South Korea where currencies are expected to appreciate while remaining cautious about China during its sluggish recovery.

Foreign investors increased their holdings in "emerging" Asian bond markets outside China by $20.2 billion in the first half of 2023, the highest half-yearly figure in two years, according to a report by the Australia and New Zealand Banking Group (ANZ).