Foreign investment in Asian bonds reached a seven-month peak in June. Lower oil prices and strong technology demand improved the regional outlook, encouraging investors to move from equities toward safer fixed-income assets.
Data from local regulators showed foreign investors purchased a net $11.51 billion in bonds across South Korea, Indonesia, Malaysia, Thailand and India. This was the largest monthly net inflow since November 2025.
A decline in crude prices from four-year highs eased inflation pressures in major Asian oil importers. Brent crude fell 20.8 percent in June to a four-month low, supporting sentiment even as prices later rebounded amid renewed Middle East tensions.
The global AI boom, which has aided manufacturing across Asia, also lifted confidence. Factory activity expanded in China, Japan and South Korea last month on rising demand for technology goods.
South Korean bonds recorded $2.2 billion in net foreign inflows, marking their seventh monthly inflow in eight months. Indian bonds attracted $3.24 billion, the largest monthly inflow since June 2017, after New Delhi removed capital gains tax on government securities for overseas investors.
Indonesian bonds drew a net $5.5 billion, the biggest cross-border inflow since May 2024, mainly into specific central bank securities offering relatively high yields. Malaysian bonds received $1.21 billion while Thai bonds saw a net outflow of $627 million.
