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Summer Heat: Emerging Markets
_The fifth consecutive month of positive foreign investor cash flows to emerging markets came despite outflows of $7.2 billion from Chinese debt and a small $100 million inflow to the country's equities, the IIF found.
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Overall, investors put $6.9 billion into emerging market equities and $3.5 billion into debt.
The figures, while positive, again failed to maintain the optimism from early this year, when inflows hit a two-year high on China's post-pandemic reopening and hopes that a global interest rate hiking cycle was on pause.
"We maintain our view of lower inflation in the coming months for the U.S. and a controlled landing of the economy, which may benefit EM flows overall," Fortun added.
The bulk of the incoming cash - a total of $16.4 billion - went to Asian emerging markets, with equities in India, Taiwan and Korea drawing large investments.
Investors pulled a total of $5.8 billion from emerging markets in Africa and the Middle East. Outflows from South Africa, which struggled with rolling power cuts and souring local investor sentiment, hit $562 million in equities and $816 million in debt.
See my May 21 post:
CIVETS, TIGERS, AND THE NEXT ELEVEN: Part 1 - The Oft Ignored Emerging Markets
Reuters
South African rand hits new low amid dollar strength, poor outlook
The South African rand hit a record low on Tuesday on the back of a strengthening dollar and souring local investor sentiment that has seen massive capital outflows from the country.
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