Covering the Association of Southeast Asian Nations (ASEAN), the People’s Republic of China, Hong Kong, China, and the Republic of Korea, the report notes that positive investment sentiment supported a narrowing of risk premiums, a rally in equity markets, and net foreign portfolio inflows.
Financial conditions marginally improved between 1 June
and 31 August in emerging East Asia on sound economic
fundamentals and regional monetary tightening cycles
approaching their end. Most regional central banks kept
their interest rate hikes on hold amid easing inflation,
while some central banks started to lower rates to boost
economic growth.
Covering the Association of Southeast Asian Nations (ASEAN), the People’s Republic of China, Hong Kong, China, and the Republic of Korea, the report notes that positive investment sentiment supported a narrowing of risk premiums, a rally in equity markets, and net foreign portfolio inflows. However, interest rates in the region remained elevated, partly due to a rise in bond yields in major advanced economies. Higher borrowing costs have contributed to debt stress and bond defaults in some markets in the region over the past few months.
