Foreign Investors Pull $26.6 Billion From Emerging Markets in May as Asia Stocks Lead Selloff
Updated
Updated · Reuters · Jun 10
Foreign Investors Pull $26.6 Billion From Emerging Markets in May as Asia Stocks Lead Selloff
3 articles · Updated · Reuters · Jun 10
Summary
$26.6 billion left emerging-market portfolios in May, a sharp reversal from April’s $70.6 billion inflow as foreign investors dumped equities.
$37.0 billion of stock outflows drove the swing, while debt still drew $10.4 billion, showing the retreat was concentrated in riskier assets rather than a full shutdown in funding.
Asia bore the brunt: emerging Asia posted $31.6 billion in net outflows, led by $27.9 billion pulled from South Korean stocks, with India losing $4.9 billion and Brazil $2.9 billion.
U.S. payroll strength, higher energy prices and rising bets on a Federal Reserve hike lifted the bar for EM investing, especially in countries with weaker external balances or policy credibility.
China bucked the regional trend with $8.1 billion in equity inflows, and EM debt remained relatively resilient as investors still favored high real yields and credible policy frameworks.