Stagflation-Free Asian Markets Are Leaving Taper Tantrums Behind
- Asia’s currencies, bonds faring better than most peers
- Region benefiting from weaker inflation, built-up FX reserves
This article is for subscribers only.
Emerging Asian markets are reaping the rewards of years of building up foreign-exchange reserves as they become a preferred destination for risk investors.
While no market has come through 2022 unscathed, countries from Indonesia to South Korea and the Philippines are benefiting from a quarter-century of preparing for a repeat of the turmoil that took place during the Asian financial crisis in the late 1990s. Even as the dollar rallied, emerging Asia’s currencies are mostly faring better than traditional havens such as the yen and euro. The region’s bonds are standing out as a rare bright spot in a year that sent global debt into its first bear market for a generation.