By Anirban Sen and Pritam Biswas

March 9 (Reuters) - Singapore Exchange SGXL.SI will roll out Asian government bond futures in the coming weeks, CEO Loh Boon Chye said on Monday, as investors increasingly turn to hedging tools amid market strains fueled by rising geopolitical tensions.

The decision comes amid a global selloff in bonds on fears that the renewed Middle East conflict could stoke inflation and prompt more hawkish moves by the central banks. Bond futures are a crucial tool to manage interest rate risk.

Investors and traders typically use derivatives to hedge risk, amplify returns or speculate on price movements without owning the underlying asset.

"If you are really a global participant in the Asian economy portfolio, what is important is to have popular risk management," said Loh.

Singapore Exchange's decision comes months after the derivatives arm of the exchange said that it would launch bitcoin and ether cryptocurrency perpetual futures trading on its platform.

However, Asian bonds drew foreign inflows for a fourth consecutive month in January, as an improving growth outlook and firm demand for regional exports continued to support investor interest.

Foreign investors bought a net $3.78 billion worth of local bonds in South Korea, Thailand, Malaysia, India and Indonesia in January, compared with net purchases of about $8.07 billion in December, according to data from local regulators and bond market associations.

"Asia, nowadays, is a market for investors to gain exposure to growth. It is also increasingly an area where risk gets priced quite quickly, because events are now round the clock," the CEO said.

Loh did not specify when the contracts would launch or which markets they would cover, but said there was clear demand for such products amid the rapidly shifting conditions in countries such as Japan and Australia.

Singapore Exchange reported its highest half-year profit last month since going public in 2000, aided by strong trading volumes across all its business segments, and flagged robust stock market activity alongside a growing IPO pipeline.