Soo Chong Lim, head of Asia credit research at JP Morgan, says Asia “has become more of a net capital exporter than importer”, underpinned by deep demand from regional banks — in particular, Chinese banks — Asia and emerging market (EM) funds, insurers, central banks and private banks’ clients.
Asia credit markets slipped in 1Q2026, ending the quarter down 0.5% and breaking four straight quarters of gains, as the Middle East conflict widened spreads by 19 basis points and pushed US Treasury yields up 18 basis points, according to JP Morgan’s Asia Credit Outlook 2Q2026.
Despite the losses, Asia credit outperformed US and emerging-market peers, which JP Morgan attributes to stronger technicals, higher credit quality, and a better starting position.
