MANILA (XINHUA) – Emerging East Asia’s financial conditions have improved, leading to declining bond yields amid moderating inflation and expected interest rate cuts, said a new report by the Asian Development Bank (ADB) released yesterday.
According to the latest edition of Asia Bond Monitor, emerging East Asia’s financial markets rebounded starting in July, when the United States Federal Reserve hinted at a policy rate cut in September.
Emerging East Asia’s currencies appreciated against the US dollar, and risk premiums narrowed, the report said, adding that emerging East Asia’s equity market recorded inflows of USD7.6 billion during the review period.
“Policy rate cuts are forthcoming in both advanced and regional markets, which will strengthen financial conditions in emerging East Asia,” ADB Chief Economist Albert Park said.
“In general, risks to the regional financial outlook remain balanced.”
