Emerging economies’ crisis risky for Asia bonds

Emerging East Asian bond markets, despite their stable growth, must be prepared to manage “mounting” risks that may originate from contagion triggered by a crisis in one or two emerging economies, the Manila-based Asian Development Bank (ADB) said.

According to ADB’s Asia Bond Monitor report, the emerging East Asian region—composed of the bond markets in China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Thailand, and Vietnam—remained relatively stable in the fourth quarter of 2013 amid the financial turmoil swirling in emerging markets.