emerging market: Emerging markets flows slow to weakest since April 2020: IIF

NEW YORK: Overseas web flows to rising market fairness and debt portfolios slowed in March to their weakest in nearly a yr as rising U.S. yields proceed to weigh on EM, with flows excluding China barely making a blip final month, knowledge from the Institute of Worldwide Finance confirmed on Monday.

The web estimated $10.1 billion in flows in March was the bottom month-to-month determine since April 2020 and compares with a downwardly revised $23.four billion web inflows in February.

China took in almost 90% of web flows final month with $3.eight billion going to equities and $5 billion to Chinese language debt devices. Excluding China, EM equities funneled $0.2 billion whereas $1.2 billion flowed to non-Chinese language debt.

“Regardless of the disappointing readings, some optimistic help to flows stays, stemming from growing commodity costs and constructive stability of funds dynamics,” the IIF stated in a observe. “Our view is that contagion threat is much less extreme than in the course of the EM sell-off in 2018 or in the course of the 2013 taper tantrum.”

The uncertainty surrounding Turkey after its hawkish central banker was surprisingly sacked final month was one of many idiosyncratic occasions that has additional weighed on urge for food for EM property, the IIF stated.

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