Higher rates have attracted inflows from overseas, helping improve the nations’ external balances. Slowing inflation has added to the appeal of many of these markets, while governments in India and Indonesia have taken steps to boost the economy. HSBC Holdings Plc says it is bullish on local-currency government bonds in Mexico, South Africa, India, Indonesia, Malaysia and Russia, citing an expected decline in inflation risk premiums that will likely trigger flatter yield curves. Asian currencies topped a recent Bloomberg survey of EM watchers for their resilience to the risks looming ahead. Brazil, Turkey, Indonesia, India and Thailand, which were among the worst affected during the taper tantrum in 2013, have improved their fundamentals, he said.

Source: Mint July 17, 2017 04:18 UTC