AsianFin -- Asian bond markets attracted their first monthly foreign inflow in three months in August, as expectations of U.S. Federal Reserve interest rate cuts fueled demand for higher-yielding emerging market debt.

Data from regulatory authorities and bond market associations in India, Indonesia, Thailand, Malaysia, and South Korea showed that non-native investors bought a net $311 million in Asian bonds last month, marking the first net purchase since May.

The inflows were driven by optimism that the Fed’s recent policy moves would support a cooling U.S. labor market. On Wednesday, the Federal Reserve cut interest rates for the first time since December, citing rising risks to employment. Officials also indicated further reductions could follow if unemployment rises, work hours shrink, or other signs of labor market weakness continue to emerge.