Chinese economic woes and the Federal Reserve’s brewing interest rate hikes have pressured investors to sell its Asian bonds and currencies.
An HSBC data indicated a net $3.2 billion ditched equity markets in the region, excluding Japan, the biggest outflow since January.
The report added bond markets in Indonesia and South Korea are now receiving huge reverse of inflows, while currencies have slumped sharply.
The MSCI Asia-Pacific Index climbed 19% between late January and the end of April in the wake of tailwinds of a dovish Fed, hopes the Chinese economy will recuperate, and stabilization in commodity prices.
The material has been provided by InstaForex Company – www.instaforex.com