International outflows hit Asian bonds in Nov on Trump coverage issues, greenback’s rise

(Reuters) – Asian debt markets witnessed international outflows in November for the primary time in seven months as expectations of adjustments in U.S. commerce insurance policies underneath the forthcoming Trump administration and a strengthening greenback dampened investor urge for food.

Non-native traders withdrew a internet $1.92 billion from native bond markets in Indonesia, Thailand, Malaysia, India and South Korea, registering their first month-to-month internet gross sales since April, knowledge from regulatory authorities and bond market associations confirmed.

“Markets began to cost within the implications of an incoming Trump administration for Asia, in addition to the outlook for U.S. charges,” mentioned Khoon Goh, head of Asia analysis at ANZ.

“The prospect of commerce restrictions subsequent yr doesn’t bode nicely for the outlook of portfolio flows for the area.”

Following his November 5 election victory, U.S. president-elect Donald Trump pledged to impose important tariffs on America’s prime three buying and selling companions, together with China, probably impacting exports reliant on sturdy Chinese language provide chains.

Foreigners divested about $1.8 billion value of Indonesian bonds, halting their six-month shopping for development.

Thai and Malaysian bond markets witnessed international outflows for a second successive month, value about $1.08 billion and $257 million, respectively, on a internet foundation.

The greenback’s surge to two-year highs after Trump’s victory final month dampened investor urge for food for regional bonds, with the Malaysian ringgit, Thai baht, and South Korean received every dropping almost 1.5% in opposition to the greenback.

South Korean bonds, in the meantime, noticed a internet $1.07 billion value of international inflows, the fifth month-to-month internet buy in a row, influenced by their upcoming inclusion within the FTSE Russell’s World Authorities Bond Index (WGBI) beginning November 2025.

Foreigners additionally added a meagre internet $145 million to Indian debt markets final month.