Having dumped Asian shares on resurgent worries about China’s economy, the specter of more aggressive US interest rate rises is now forcing global investors to sell the region’s bonds and currencies. Reuters reports a net $3.2 billion left Asian equity markets, excluding Japan, during the period May 1 to 24, the largest outflow since January, data from HSBC showed. Indonesia’s and South Korea’s bond markets, heavy recipients of foreign investment until March, are now seeing chunks of inflows reverse while Asia’s currencies have also fallen quite sharply. Some market participants see the outflows as an overreaction, but others fear for the long-term health of the Chinese economy.
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