Foreigners Chase Malaysian Bonds as War Hits Emerging Markets

Global investors are pouring money into Malaysian bonds as the Iran conflict drives oil prices higher, bolstering the outlook for the energy-exporting nation while rattling other emerging-market peers.

Global funds bought over $2 billion in Malaysian corporate and sovereign bonds as of March 19, marking the highest inflow in 10 months, according to the latest data from Bank Negara Malaysia. By contrast, debt markets in Thailand and Indonesia experienced capital outflows last month.