Saturday, October 23, 2021
News

COVID-19 resurgence dampens investor sentiment in emerging East Asia: ADB

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Manila | September 24, 2021 11:46:05 AM IST
The coronavirus disease (COVID-19) pandemic's resurgence in recent months has dampened investor sentiment in emerging East Asia even as accommodative policy stances have kept financial conditions stable, according to the latest issue of the Asian Development Bank's (ADB) Asia Bond Monitor.

China, Indonesia, Malaysia, Thailand, and Vietnam posted declines in yields on short-term (2-year) and long-term (10-year) government bonds from June 15 to August 27.

The decline of long-term bond yields in most markets tracked looming uncertainty about recovery prospects amid rising COVID-19 cases. Equity indexes dropped and currencies depreciated in most emerging East Asian markets while foreign portfolio investments flowed outward.

Local currency bond markets in emerging East Asia grew to 21.1 trillion dollars at the end of June, driven by the continuing increase in government bond issuance.

Governments continued to tap local currency bond markets to support pandemic containment and recovery. Outstanding local currency bonds increased 2.9 per cent, accelerating from 2.2 per cent the previous quarter.

Government bonds increased 3.3 per cent to 13.1 trillion dollars compared with 2.1 per cent growth in the previous quarter.

"The emergence of COVID-19 variants and renewed mobility restrictions in some places are stifling the earlier momentum toward a sustained recovery," said ADB Acting Chief Economist Joseph Zveglich Jr.

"However, financial conditions in emerging East Asian economies remain stable, even as they cope with the continuing uncertainty. Some central banks have used small-scale asset purchase programs to improve bond market liquidity and boost private investor confidence."

Zveglich said long-term debt is making up more of the region's local and foreign currency debt structure, and the region's sustainable bond markets are expanding.

Emerging East Asia comprises China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. (ANI)

 
  LATEST COMMENTS ()
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Demand pickup, infra creation to grow lo...
Great Place to Work Certification Annou...
Amidst a Drop in Glove Prices - SRAM &am...
Krishna Singh Thakur's Pardesia is out n...
Massimo Dutti Launches Online Store...
Organik Monster offers exclusive SEO tra...
More...
 
INDIA WORLD ASIA
Tibetan activists, supporters join Globa...
Goa's passion, craze for football is at ...
RAW should investigate Captain's friend ...
Amit Shah's J-K visit; to inaugurate Sri...
J-K administrtation issues fresh guideli...
Internet Services in Bikaner are suspend...
More...    
 
 Top Stories
[10th 12th CBSE Datesheet Announced... 
Society should not glamourise unhea... 
Man stabbed to death by unknown per... 
Man arrested for forging Parliament... 
Protest held in Chaman against bord... 
Karan Johar shares unseen picture o... 
Punjab CM Channi reiterates his sup... 
K-pop boy band Seventeen eyes Billb...