Foreign capital inflows to Asian debt markets fell to four months low in July Points

As a result of the economic downturn triggered by the oil price shock and the Middle East conflict, Asian major bond markets experienced a decline in foreign capital inflows in July to a low of four months. Data from regulators and bond market associations show that foreign investors in local bond markets in India, Indonesia, Malaysia, the Republic of Korea and Thailand combined net purchases of $2.03 billion, the lowest monthly net acquisitions since March. Despite the continuing global demand from foreign investors for emerging market debt, Asian debt market inflows have slowed. According to the International Finance Association, investors injected $26.7 billion into emerging market debt in July, while emerging market equities outflows were $7.8 billion. As many Asian economies are vulnerable to rising energy costs, Asian markets are less attractive。