Despite Wednesday’s comments from ADB, it cannot be ignored that the lending agency recently offered up a cautious assessment of bond markets in some Asian countries. Last week, in reference to the region it calls Emerging East Asia, ADB said “Yet, risks to the region’s bond markets are intensifying. Specifically, (i) the region’s interest rates could rise further when the Federal Reserve starts to tighten policy; (ii) weakening growth momentum in the region could accelerate the pace of capital outflows; and (iii) continued outflows could result in vulnerable economies raising interest rates to prop up their currencies, thereby further dampening growth.” [This Region Could be Problematic for EM Bond ETFs]
ADB classifies the following countries as Emerging East Asia: China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Thailand and Vietnam. Hong Kong and Singapore are AAA-rated developed markets.
Market Vectors Indonesia ETF
ETF Trends editorial team contributed to this post.