Asia stands out as alternative safe haven

THE faltering emerging-market currency rally is stronger than ever in Asia.

Of the nine developing-nation exchange rates to strengthen in August, six were from Asia, with South Korea's won and Malaysia's ringgit leading the gains. A Bloomberg index of the 20 most-traded emerging-market currencies posted its first back-to-back monthly drop since January as geopolitical strife and the withdrawal of extraordinary monetary stimulus in the US makes investors choosier about where they put their cash.

Asian countries are being favoured because of their generally superior trade balances, particularly now that China's economy is showing signs of stabilising. South Korean and Indian bond markets attracted a combined US$5 billion from international investors last month, while Turkey and South Africa saw outflows of US$2 billion, data compiled by Bloomberg show.