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According to Malaysia's central bank, the ringgit's recent rally is expected to continue due to the country's positive economic outlook and reforms. The bank believes that Malaysia's economic prospects, along with initiatives to encourage flows, will provide enduring support to the currency. Despite the ringgit's significant surge this quarter, policymakers do not appear to be concerned. The currency may take a breather after its sharp gains, but the narrowing of interest-rate differentials with the US is expected to attract portfolio inflows. Prime Minister Anwar Ibrahim's government is also taking steps to boost investor confidence in the country. [Extracted from the article]

According to Malaysia's central bank, the ringgit's recent rally is expected to continue due to the country's positive economic outlook and structural reforms. The ringgit is currently the top performer among emerging markets this quarter, reaching its highest level since June 2021. Factors contributing to the ringgit's strength include signs of economic recovery in China, Malaysia's largest trading partner, and greater clarity on the interest rate path of developed countries, particularly the US Federal Reserve. The recent rate cut by the Federal Reserve has also made ringgit assets more attractive to global funds. [Extracted from the article]

According to Malaysia's central bank, the ringgit's recent rally is expected to continue due to the country's positive economic outlook and structural reforms. The ringgit is currently the top performer among emerging markets this quarter, reaching its highest level since June 2021. Factors contributing to the ringgit's strength include signs of economic recovery in China, Malaysia's largest trading partner, and a narrowing rate differential between the US and Malaysia. The central bank has indicated that interest rates are likely to remain unchanged for the rest of the year. [Extracted from the article]

The baht, Thailand's currency, has reached its strongest level in 30 months due to China's stimulus measures and increased risk appetite globally. This has put pressure on the Bank of Thailand to take action to curb the baht's rally. The strong baht is a concern for Thailand's exports and tourism sectors, and the finance minister has called for lower interest rates to slow the currency's rise. The central bank is closely monitoring the situation and will discuss it in upcoming talks. [Extracted from the article]

The baht, Thailand's currency, has reached its highest level in 30 months due to China's stimulus measures and increased risk appetite globally. This has put pressure on the Bank of Thailand to take action to curb the baht's rally. The currency's rapid rise is negatively impacting exporters and prompting calls for the central bank to intervene and cut interest rates to protect the economy. The Bank of Thailand is closely monitoring the situation and is prepared to address any abnormal swings that may affect businesses and the economy. [Extracted from the article]

Dovish wagers are increasing for Asian central banks due to the Federal Reserve's policy shift, which allows for more rate cuts in the region and reduces the risk of capital outflows. Traders in the bond and swap markets are betting on rate cuts in the Philippines, Indonesia, South Korea, and India, as the Fed's recent rate reduction narrows the interest rate gap with the US and benefits local assets. Additionally, stimulus measures in China are boosting Asian currencies, creating room for further rate cuts. This trend is likely to benefit local bonds, with the Bloomberg EM Asia bond index showing strong returns. [Extracted from the article]

The baht, Thailand's currency, has reached its highest level in 30 months due to China's economic stimulus and increased risk appetite globally. This has put pressure on the Bank of Thailand to take action to prevent further appreciation. The baht's rapid rise is negatively impacting exporters and prompting calls for the central bank to intervene and lower interest rates to protect the economy. Finance Minister Pichai Chunhavajira and BOT Governor Sethaput Suthiwartnarueput are scheduled to discuss the baht's strength next week, and officials will decide on rates in October. Foreign funds have been flowing into Thai bonds and equities, indicating growing investor confidence. [Extracted from the article]

The baht, Thailand's currency, has reached its highest level in 30 months due to strong portfolio inflows and a weak US dollar. This has caused concerns for exporters in Thailand, as the stronger baht makes their products less competitive. There are calls for the central bank to intervene and lower interest rates to protect the export and tourism sectors, which are vital to Thailand's economy. Foreign investors have been buying Thai stocks and bonds, with over $400 million flowing into Thai bonds in September alone. [Extracted from the article]

Asian currencies have reached their highest level in over a year following the Federal Reserve's decision to cut interest rates and indicate further reductions. The Bloomberg Asia Dollar Index rose by 0.2%, with the Indonesian rupiah and South Korean won leading the gains. The Fed's rate cut weakened the US dollar, resulting in other emerging-market currencies, such as the Mexican peso and South African rand, also rising. While some analysts expect further appreciation in Asian currencies in the fourth quarter, they anticipate a reversal in 2025. The growth prospects in Asia, along with the weakened US dollar, are contributing to the strength of Asian currencies. [Extracted from the article]

Singapore's unique monetary policy approach is creating an opportunity for traders to profit from a narrowing gap between the Singapore dollar and US dollar interest-rate swaps. The difference between the two-year overnight indexed swap rates in the two currencies is currently at its tightest level in over a year. As the Monetary Authority of Singapore (MAS) moves closer to its own version of policy easing, following the Federal Reserve's rate cuts, this trade is expected to become even more profitable. Unlike other major central banks, the MAS focuses on the value of the currency as its main policy tool, allowing market forces to determine interest rates. The MAS may ease its policy as early as the October meeting if core inflation eases further. The last time the Federal Reserve eased policy in 2019, the gap between Singapore and US swap rates narrowed significantly. The MAS has left its monetary policy unchanged for the past five meetings, but signs of a moderation in core inflation may open the window for policy easing next month. While there is an increased risk of the MAS easing in October, Nomura Holdings Inc. predicts no change in its FX policy through 2024. The Singapore dollar is currently trading near its highest level in a decade against the US dollar. [Extracted from the article]

A potential decision by the Federal Reserve to cut interest rates may cause a rally in the yen, which could unsettle emerging-market investors. This has similarities to the global volatility seen in August when the yen rallied due to the Bank of Japan's rate hike. A larger rate cut by the Fed may raise doubts about the health of the US economy and prompt a selloff in emerging Asia assets. On the other hand, a smaller rate cut may benefit equities, particularly in smaller Southeast Asian markets. The trajectory of the yen is closely tied to expectations around Fed rate cuts, and a bigger cut may hurt the earnings of Japanese exporters. Smaller Southeast Asian markets have become attractive to money managers positioning for the shift in Fed policy, with Thailand leading as one of the best-performing Asian equity benchmarks. Lower rates in the US may prompt the Reserve Bank of India to reduce borrowing costs, attracting foreign investors to local shares. India's rising economic growth and manufacturing sector have made it a favorite among investors. The mood is cautious in China as investors wait to see if weak economic data will prompt authorities to increase stimulus. A rate cut by the Fed may give China more room to ease, but there are concerns about domestic economic weakness and external tariffs. The rally in Australian bonds may be overextended, and the market will closely monitor local jobs data for August. The rally's extension will depend on the Fed meeting expectations for a terminal rate around 2.75%. [Extracted from the article]

The Federal Reserve's expected shift to interest-rate cuts is likely to benefit emerging Asian market assets, particularly smaller Southeast Asian markets. However, a significant rise in the yen could cause volatility in the Japanese market and chip stocks. Investors are divided on whether the Fed will start with a standard 25 basis point cut or a larger one, with a half-point reduction potentially raising concerns about the health of the US economy. The trajectory of the yen is closely tied to expectations around Fed rate cuts, and a bigger cut could further boost the currency, impacting the earnings of Japanese exporters. Smaller Southeast Asian markets have become popular choices for money managers positioning for the shift in Fed policy, with Thailand leading as one of the best-performing Asian equity benchmarks. Fund managers have increased positions in sovereign bonds in Thailand, Indonesia, and Malaysia, and have been net buyers of equities in Indonesia, Malaysia, and the Philippines. India may also benefit from lower rates in the US, potentially prompting the Reserve Bank of India to reduce borrowing costs. This has attracted foreign investors to local shares, pushing up the main equity indexes to a record. India's rising economic growth rate, growing middle class, and burgeoning manufacturing sector have made it a favorite among investors. The mood on China is cautious, as investors wait to see if weak economic data will prompt authorities to increase fiscal and monetary stimulus. A rate cut by the Fed may give China more room to ease without currency concerns, but given the country's domestic economic weakness and external tariffs [Extracted from the article]

Global funds are investing in Southeast Asian assets due to the potential for interest-rate cuts and attractive valuations. Money managers have increased their positions in sovereign bonds in Thailand, Indonesia, and Malaysia, as well as being net buyers of equities in Indonesia, Malaysia, and the Philippines. Southeast Asian central banks are expected to enter a rate-cut cycle, with the Philippines already easing in August and Indonesia predicted to follow. The region's currencies have been the best performers in emerging markets this quarter, and regional stocks have outperformed their broader emerging market peers. Southeast Asia is also seen as a beneficiary of "friend-shoring," as investors seek alternatives to China amid trade frictions with the US. [Extracted from the article]

Global funds are investing in Southeast Asian assets due to the potential for interest-rate cuts and attractive valuations. Money managers have increased their positions in sovereign bonds in Thailand, Indonesia, and Malaysia, as well as being net buyers of equities in Indonesia, Malaysia, and the Philippines. This has led to Southeast Asian currencies outperforming other emerging markets this quarter, and regional stocks surpassing their peers. Southeast Asian central banks are expected to enter a rate-cut cycle, with the Philippines already easing in August and Indonesia predicted to follow. The region's high real interest rates suggest room for policy easing, benefiting the local bond market. BlackRock Inc. plans to buy bonds in Asian countries such as the Philippines and Indonesia, anticipating rate cuts by the Federal Reserve and local central banks. Southeast Asian currencies also appear undervalued based on real effective exchange rates. The region is seen as a beneficiary of "friend-shoring," as businesses seek alternatives to China amid trade frictions with the US. Southeast Asia's proximity to China and India, as well as favorable demographics, make it an attractive option for diversifying manufacturing and sourcing. [Extracted from the article]

Thai stocks are experiencing their largest one-day gain in almost four years, as traders anticipate political stability and market-boosting measures. The benchmark SET Index has risen by as much as 3%, marking its best day since November 2020. The strengthening baht against the dollar and the recently installed government's commitment to policy continuity have contributed to growing conviction that the previously underperforming stock market is due for a turnaround. The Thai government is also planning to raise cash to boost the stock market, and global funds have been investing in Thai bonds in anticipation of rate cuts by the US Federal Reserve. However, analysts caution that further policy measures are needed to sustain these gains. [Extracted from the article]

Investors are buying Malaysian bonds without hedging, leading to a surge in the country's currency, the ringgit. Global funds purchased 8.1 billion ringgit ($1.9 billion) of Malaysian government bonds in August, the largest inflow since July 2023. This trend is driven by expectations of ringgit gains and has resulted in a 6% increase in the ringgit's value. Malaysia's improving economic prospects have made it an attractive investment destination, with inflows into both bonds and stocks. The correlation between foreign inflows into Malaysian debt and the ringgit has strengthened in the past six months, indicating an increase in unhedged buying. The unhedged Bloomberg index of Malaysian bonds has provided a total return of 9.74% to dollar-based investors this quarter, the highest in emerging Asia. However, the ringgit's performance has not always mirrored bond inflows due to hedging strategies. Malaysia's bonds and currency have been supported by manageable inflation, adherence to fiscal deficit targets, and political stability. The future performance of Malaysian bonds and the ringgit will depend on the actions of the Federal Reserve and Bank Negara Malaysia. While a potential easing by Bank Negara Malaysia could further boost bonds, it is unlikely in the near term. Foreign flows may slow if US economic data does not support the dovish Fed pricing. [Extracted from the article]

Thai stocks and the baht currency have experienced a significant rally following the formation of a new government in Thailand. The country's equity benchmark SET Index rose by as much as 2.9%, with packaging, information and technology, and petrochemical companies leading the gains. The baht also strengthened, reaching its highest level against the dollar since May of the previous year. This positive market performance has been attributed to signals of policy continuity, a pivot from the Federal Reserve, and reduced political risks in Thailand. The new government aims to accelerate economic recovery, implement cash handout policies, and raise capital for state investment to support the local stock market. [Extracted from the article]

Investors are buying Malaysian bonds without hedging, leading to a surge in the country's currency, the ringgit. Global funds purchased 8.1 billion ringgit ($1.9 billion) of Malaysian government bonds in August, the largest inflow since July 2023. The demand for foreign bonds is driven by expectations of ringgit gains, and the correlation between foreign inflows into Malaysian debt and the ringgit has become stronger in the past six months. Malaysia's improving economic prospects, lower bond yields, and manageable inflationary pressures have made it an attractive investment destination. However, the future rally depends on the actions of the Federal Reserve and Malaysia's central bank. [Extracted from the article]

Foreign investors have been pouring money into Indonesian sovereign bonds, with $2.2 billion invested in August, the highest amount since January 2023. This surge in demand is driven by the prospect of a Federal Reserve rate cut and the appeal of Asian bonds over US Treasuries. Indonesia's improving government finances and higher returns have also attracted investors. However, foreign fund holdings of Indonesian debt are still below historical levels compared to other regional peers. The optimism surrounding Indonesian bonds is evident in recent bond offerings, and the demand for Indonesia's dollar bonds has also been strong. [Extracted from the article]

Indonesia has become a preferred investment destination for global money as the US Federal Reserve's easing cycle approaches. In August, overseas investors bought $933.8 million of Indonesian stocks, the highest monthly purchases since April 2022, and there were net inflows of $2.5 billion into bonds, the most in over a year. The influx of money has led to the rupiah briefly erasing its losses against the dollar, with a gain this month surpassed only by Malaysia's ringgit. Foreign funds have been reducing holdings in other regional equity markets in favor of Southeast Asia, which is seen as relatively undervalued. Indonesian stocks have started commanding greater attention, with the benchmark Jakarta Stock Index reaching record highs in August. [Extracted from the article]

Foreign investors have poured $2.2 billion into Indonesian sovereign bonds in August, the highest amount since January 2023. However, foreign holdings of Indonesian debt are still below historical levels compared to other countries in the region. The appeal of Asian bonds has increased due to the prospect of a Federal Reserve rate cut and strengthening currencies. Improving government finances and higher returns have also attracted investors to Indonesian debt. Despite the recent inflow, Indonesian bonds have seen a net foreign outflow of $9.3 billion since March 2020, while Thailand and Malaysia have experienced inflows. There is optimism that foreign investors may continue to increase their holdings of Indonesian bonds, especially if US rates drop further. The Indonesian government's announcement of a lower budget deficit target has also boosted confidence in the bond market. Debt issuance is increasing across the region as investors seek to take advantage of positive momentum. Indonesian bonds have delivered high returns, with a Bloomberg index offering a return of 6.7% to unhedged dollar-based investors in August, the highest in emerging Asia. However, concerns were raised in June about the incoming administration's plans to increase the debt-to-GDP ratio, but officials have since pledged fiscal continuity. [Extracted from the article]

Foreign investors continued to show strong interest in Indonesian bonds despite pro-democracy protests in the country. On the day of the protests, investors poured $610 million into Indonesian bonds, the largest single-day inflow in five years. The hunt for yields remains a priority for global investors, and the recent fall in Treasury yields has improved yield differentials for Asian local currency sovereign bonds, including Indonesian government bonds. Additionally, factors such as Indonesia's target deficit, expectations of interest rate cuts, and the strengthening of the rupiah have contributed to the continued inflows into Indonesian bonds. [Extracted from the article]

The yen carry trade, a popular investment strategy, recently experienced a significant downturn due to the strengthening of the Japanese currency. However, a lesser-known version of the strategy involving the Chinese yuan is expected to be more resilient. This is because the yuan carry trade primarily involves exporters and multinational corporations rather than speculators. The strategy involves borrowing yuan to invest in higher-yielding assets, and it has been performing well this quarter compared to the yen-funded alternative. The differences between the two trades include the limited convertibility of the yuan and the fact that yuan-funded trades are mainly held in dollars by Chinese exporters and multinationals. Despite the appeal of the yuan carry trade, its total size may be limited due to the People's Bank of China's ability to prevent excessive speculative positions. Financial firms such as Citigroup, Goldman Sachs, and Nomura are recommending clients to continue borrowing yuan for carry positions. [Extracted from the article]

The yen carry trade, which involves borrowing yen to buy higher-yielding assets, recently collapsed due to the surge in Japan's currency. However, a less well-known version of the strategy involving borrowing yuan to buy higher-yielding assets is expected to be more resilient. This is because China's central bank is keeping its monetary policy dovish, making the yuan carry trade more attractive to exporters and multinationals. The yuan carry trade has returned 0.5% this quarter, while the yen-funded alternative has tumbled around 7%. Despite some differences between the two trades, financial firms are recommending clients to continue borrowing yuan for carry positions. [Extracted from the article]

Malaysia's bonds are expected to benefit the most among emerging Asian bonds from a rally in US Treasury yields. The correlation between EM Asia bonds and 10-year US yields has increased, with Malaysian bonds having the highest correlation in the region. The rally in the Malaysian ringgit has attracted foreign investors, leading to strong buying of Malaysian bonds. Other regional bond markets, such as Thailand and South Korea, are also exposed to fluctuations in Treasuries. The increased correlation between Asian sovereign debt and Treasuries has made regional bonds more vulnerable to higher US yields and a rebound in the dollar. [Extracted from the article]

Malaysian bonds are expected to benefit the most in emerging Asian markets due to their correlation with US Treasury yields. The correlation between EM Asia bonds and 10-year US yields has increased, indicating that Malaysian bonds will likely outperform their peers as investors bet on Federal Reserve interest-rate cuts. The rally in the Malaysian ringgit has attracted foreign investors, leading to strong buying of Malaysian bonds. However, the increased correlation between Asian sovereign debt and Treasuries also makes regional bonds vulnerable to higher US yields and a rebound in the dollar. [Extracted from the article]

The article discusses the recent rally in Asian currencies and the key levels that traders are watching. The Federal Reserve's annual conference in Jackson Hole is expected to provide further clarity on rate cuts in the US, which could impact the interest-rate gap between the US and Asian economies. The article highlights specific levels to watch for the yen, offshore yuan, rupiah, ringgit, and baht, and provides insights into potential movements based on momentum indicators. Overall, Asian currencies have been performing well this year, with some currencies close to wiping out their year-to-date losses against the dollar. [Extracted from the article]

Asian currencies have reached a seven-month high due to reduced concerns about a US recession, expectations of Federal Reserve rate cuts, and positive domestic conditions. The Bloomberg Asia Dollar Index rose by 0.6%, with the South Korean won and Malaysian ringgit leading the way. The Thai baht also increased due to easing political tensions. However, there are potential challenges ahead, such as the possibility of the new Thai government scrapping a digital cash handout program and the relationship between the government and the Bank of Thailand. Overall, the outlook for Asian economies is positive, leading to increased investment in Asian equities. [Extracted from the article]

Asian currencies have reached a seven-month high due to reduced concerns about a US recession, expectations of Federal Reserve rate cuts, and positive domestic conditions. The Bloomberg Asia Dollar Index rose by 0.6%, with the Malaysian ringgit and South Korean won leading the way. The Thai baht also increased due to easing political tensions. Analysts believe that Asia's currencies have room to recover against a backdrop of easing bias from developed-market central banks. [Extracted from the article]

Asian currencies have reached a seven-month high due to decreased concerns about a US recession, expectations of Federal Reserve rate cuts, and positive domestic conditions. The Malaysian ringgit and Thai baht led the rally, with the ringgit reaching its strongest level since February 2023 and the baht reaching its highest level since January. The South Korean won and Philippine peso also saw significant gains. The positive outlook for Asian economies has also led to increased investment in regional equities. [Extracted from the article]

Asian currencies have reached their highest level since March due to a decrease in US recession concerns, expectations of Federal Reserve rate cuts, and positive domestic conditions. The Malaysian ringgit and Thai baht led the rally, with the ringgit reaching its strongest level since February 2023 and the baht reaching its highest level since January. The South Korean won and Taiwan dollar also experienced gains. Goldman Sachs economists have lowered the probability of a US recession and expressed confidence in a 25 basis point interest rate cut by the Fed in September. Traders are eagerly awaiting Chairman Jerome Powell's speech at the Jackson Hole symposium for further insights on Fed easing. [Extracted from the article]

Foreign investors may be less interested in Thailand's sovereign bonds due to increasing political risks and the possibility of tighter monetary policy. The recent removal of Prime Minister Srettha Thavisin by the Constitutional Court has led to a significant outflow of $244 million from the nation's bond market. Additionally, forecasts for rate cuts in other Asian countries are making their sovereign bonds more appealing compared to Thai debt. This shift in sentiment is reflected in the decline of Thai stocks and the underperformance of the baht. However, some experts believe that the foreign inflows into Thai bonds may be temporary and could be influenced by the upcoming Jackson Hole symposium. [Extracted from the article]

Thailand's assets have experienced a decline due to concerns over potential delays in policy implementation following the removal of the Prime Minister. Market watchers are highlighting worries about household debt and investment attractiveness, which may not be addressed until a new leadership is established. Analysts recommend investors focus on defensive sectors such as healthcare and telecommunications, while also suggesting opportunities to buy stocks exposed to tourism. Despite the political upheaval, some analysts believe that the stock market has historically been able to flourish in Thailand. [Extracted from the article]

The Singapore dollar has reached a new high for 2024 against the US dollar, as the local central bank is expected to maintain a tighter monetary policy compared to the Federal Reserve. The currency has experienced significant gains and is currently the third-best performing Asian currency this year. The Monetary Authority of Singapore is predicted to ease its policy next year, while there are increasing bets that the Federal Reserve will cut interest rates in September. However, experts suggest that the Singapore dollar may struggle to maintain its position as the top Asian currency due to potential Fed rate cuts and a broader decline in the US dollar. [Extracted from the article]

The Singapore dollar has reached a new high for 2024 against the US dollar, as the local central bank is expected to maintain a tighter monetary policy compared to the Federal Reserve. The currency has experienced significant gains and is currently the third-best performing Asian currency this year. The Monetary Authority of Singapore is predicted to ease its policy next year, while the Federal Reserve is anticipated to cut interest rates in September, reducing the appeal of the US dollar. However, experts suggest that the Singapore dollar may struggle to maintain its position as the top Asian currency due to potential changes in market sentiment and a possible rebound of the US dollar. [Extracted from the article]

Thailand's markets are expected to face continued pressure following the removal of the Prime Minister, as concerns about delayed policies and investor confidence persist. The country's benchmark SET Index closed lower after the Constitutional Court found the Prime Minister guilty of an ethics violation. Analysts suggest that domestic sectors such as consumer finance, banks, and property may experience more downside compared to internationally exposed and utility sectors. However, some analysts see this as an opportunity for investors to take a medium-term position in Thailand, particularly in stocks related to tourism. [Extracted from the article]

The Singapore dollar has reached an 18-month high against the US dollar due to expectations that the local central bank will maintain a tighter monetary policy compared to the Federal Reserve. The currency has experienced significant gains in August and is currently the second-best performing Asian currency this year. The Monetary Authority of Singapore is predicted to ease its policy next year, while the Federal Reserve is expected to cut interest rates in September, reducing the appeal of the US dollar. However, some analysts believe that the Singapore dollar may struggle to maintain its position as the top Asian currency due to potential dollar strength. [Extracted from the article]

Asian currencies are gaining strength due to predictions that the Federal Reserve will lower interest rates, despite the US economy avoiding a recession. The Indonesian rupiah saw its best single-day gain since December, rising 1% against the dollar. The Bloomberg Asia Dollar Index has also experienced significant gains this month, with the Malaysian ringgit and the rupiah performing particularly well. However, some experts believe that a sustained equities rally will be necessary to support the current strength of Asian currencies. [Extracted from the article]

Foreign investors may become less interested in Thailand's sovereign bonds due to the country's tighter monetary policy compared to its peers and increasing political risk. This is a shift in sentiment after global funds invested $1.7 billion in Thai bonds this quarter, making them one of the best performers in the region. Forecasts for rate cuts in other Asian countries may make their sovereign bonds more appealing than Thai debt. The recent dismissal of Prime Minister Srettha Thavisin by the Constitutional Court has also raised concerns about political risk in Thailand. [Extracted from the article]

Foreign investors have been pouring money into Malaysian bonds, attracted by the rally in the Malaysian ringgit. In July, there was a record monthly inflow of 5.5 billion ringgit ($1.2 billion) into Malaysian bonds. The ringgit's recent surge has resulted in total returns on ringgit notes reaching 5.9% this year, one of the highest in emerging markets. This influx of foreign funds is partly due to expectations of ringgit strength and confidence in Malaysia's improving economic outlook. Additionally, the rush to Malaysian debt securities is aided by light foreign positioning ahead of expected interest rate cuts by the US Federal Reserve. [Extracted from the article]

The recent market downturn had unexpected winners and losers. Gold, typically seen as a safe haven asset, actually dropped in value as traders covered margin calls. Malaysia's ringgit, on the other hand, experienced a significant rally, outperforming other emerging-market currencies, due to optimism about the country's growth and improving exports. Chinese borrowers turned to the yuan bond market for lower-cost and stable debt options, while Mongolian stocks remained resilient, with the Mongolia Stock Exchange Top 20 Index being the only benchmark in Asia to finish in the green. Lastly, Hong Kong developers saw gains as cheaper mortgages and a stronger offshore yuan suggested increased buying activity. [Extracted from the article]

Foreign investors have been pouring money into Malaysian bonds, attracted by the rally in the Malaysian ringgit. In July, there was a record monthly inflow of 5.5 billion ringgit ($1.2 billion) into Malaysian bonds, contributing to the currency's total returns of 5.9% this year. This surge in foreign bond flows is driven by expectations of ringgit strength and confidence in Malaysia's improving economic outlook. The rush to Malaysian debt securities is also partly due to light foreign positioning ahead of expected interest rate cuts by the US Federal Reserve. Maybank Securities predicts that the 10-year Malaysian government yield will fall to 3.5% by mid-2025. [Extracted from the article]

Global bonds have experienced a rally as traders anticipate more aggressive interest rate cuts by central banks, including the Federal Reserve. Short-dated notes, which are most sensitive to changes in monetary policy, led the rally. This shift in sentiment is driven by mounting evidence of a slowing global economy and concerns that the Fed has not yet eased monetary policy. Economists at Citigroup and JPMorgan Chase are now predicting a half-point rate cut by the Fed at both its September and November meetings. The rally in bonds has brought global sovereign debt close to posting gains for the first time this year. [Extracted from the article]