Malaysia, Mexico Most at Risk From Japan Carry Unwind, HSBC Says

Bond markets in Malaysia and Mexico are among the most at risk should a further increase in Japanese yields prompt the nation’s investors to repatriate capital, according to HSBC Holdings Plc.

An analysis of Japanese investors’ holdings of emerging-market bonds and equities shows that Malaysia, Chile and Mexico are “disproportionately exposed,” strategists Alastair Pinder and Pankaj Agarwala wrote in a note.