Latest news with #ConveraSingapore
Free Malaysia Today
10 hours ago
- Business
- Free Malaysia Today
Malaysian bond outflows to ease on Fed cut bets, lower dollar
Global funds withdrew US$1.2 billion from Malaysian sovereign debt last month, the largest outflow since October. (EPA Images pic) KUALA LUMPUR : Foreign outflows from Malaysia's domestic bond market may ease, according to Convera Singapore, as growing expectations of Federal Reserve (Fed) interest-rate cuts begin to shift investor sentiment. Global funds withdrew US$1.2 billion from Malaysian sovereign debt last month, the largest outflow since October, as the dollar gained for the first time this year. Following weaker-than-expected US nonfarm payrolls in July, swap markets now price in at least two Fed rate cuts this year. The prospect of looser US monetary policy and a weaker greenback may boost demand for higher-yielding emerging-market assets like Malaysian bonds – just as domestic inflation cools, with prices in June rising at their slowest pace since February 2021. 'There are signs that the worst of the outflows may be behind us,' said Shier Lee Lim, an FX and macro strategist at Convera. 'For the remainder of the year, the outlook for Malaysia's bonds will depend on broader emerging market risk appetite, the direction of US interest rates, and clarity on local policy,' Shier said.
The Star
14 hours ago
- Business
- The Star
Malaysian bond outflows to ease on Fed cut bets, lower dollar
Foreign outflows from Malaysia's domestic bond market may ease, according to Convera Singapore, as growing expectations of Federal Reserve interest-rate cuts begin to shift investor sentiment. Global funds withdrew US$1.2 billion from Malaysian sovereign debt last month, the largest outflow since October, as the dollar gained for the first time this year. Following weaker-than-expected US nonfarm payrolls in July, swap markets now price in at least two Fed rate cuts this year. The prospect of looser US monetary policy and a weaker greenback may boost demand for higher-yielding emerging-market assets like Malaysian bonds - just as domestic inflation cools, with prices in June rising at their slowest pace since February 2021. "There are signs that the worst of the outflows may be behind us,' said Shier Lee Lim, an FX and macro strategist at Convera. "For the remainder of the year, the outlook for Malaysia's bonds will depend on broader emerging market risk appetite, the direction of US interest rates, and clarity on local policy.' - Bloomberg
BusinessToday
16 hours ago
- Business
- BusinessToday
Fed Cut Hopes May Slow Malaysian Bond Outflows
Foreign investors pulled US$1.2 billion from Malaysia's sovereign debt market in July, the largest monthly outflow since October, as the US dollar strengthened for the first time this year. 'There are signs that the worst of the outflows may be behind us,' said Shier Lee Lim, FX and macro strategist at Convera Singapore. 'For the remainder of the year, the outlook for Malaysia's bonds will depend on broader emerging market risk appetite, the direction of US interest rates and clarity on local policy.' Following weaker-than-expected US nonfarm payroll figures in July, swap markets are now pricing in at least two Federal Reserve interest-rate cuts this year. Analysts say looser US monetary policy and a softer dollar could revive appetite for higher-yielding emerging market assets such as Malaysian bonds. Cooling domestic inflation may further support sentiment, with June consumer prices rising at their slowest pace since February 2021. According to Convera, the combination of falling US rates, a weaker greenback and easing inflation could help stem foreign selling pressure in Malaysia's bond market in the coming months. Bloomberg
Bloomberg
19 hours ago
- Business
- Bloomberg
Malaysian Bond Outflows to Ease on Fed Cut Bets, Lower Dollar
Foreign outflows from Malaysia's domestic bond market may ease, according to Convera Singapore, as growing expectations of Federal Reserve interest-rate cuts begin to shift investor sentiment. Global funds withdrew $1.2 billion from Malaysian sovereign debt last month, the largest outflow since October, as the dollar gained for the first time this year.
Business Times
16-05-2025
- Business
- Business Times
Foreigners revisit Indonesia stocks on easing economic concerns
[JAKARTA] Indonesian stocks are poised for their first monthly inflow since September as subsiding economic concerns and attractive banking shares lure investors. The country's equity market posted US$83.8 million in net foreign inflows as at May 15 after seven straight months of outflows. That comes as the Jakarta Composite Index (JCI) nears a bull market, having recovered by roughly 18 per cent from a low in early April after the US paused reciprocal tariffs. The flows indicate appetite for the nation's shares is returning after worries about slowing economic growth, the new government's fiscal policy and global trade tensions hurt confidence towards local stocks over the past few months. 'Technical trading signals suggest positive momentum in the short to medium term for the JCI,' said Shier Lee Lim, lead FX and macro strategist at Convera Singapore. Heightened investor interest in bank stocks within South-east Asian markets is also helping the index, she added. Financials make up about 34 per cent of the benchmark, according to data compiled by Bloomberg. Still, further gains could be at risk as the gauge's current rally is not supported by strong economic fundamentals, according to a note by Rully Arya Wisnubroto, an analyst at PT Mirae Asset Sekuritas Indonesia. The country's economy in the first quarter grew at the slowest pace in more than three years. BLOOMBERG
