Today: March 05, 2024
Today: March 05, 2024

Foreigners shovel $43.4 billion into EM portfolios in November - IIF

Share This
Foreigners shovel $43.4 billion into EM portfolios in November - IIF
Reuters
Reuters
December 13, 2023

NEW YORK (Reuters) - Emerging markets debt and stock portfolios drew in $43.4 billion from foreign investors in November, the largest net amount since January, even as China posted another month of net outflows, data from the Institute of International Finance show.

Expectations of a peak in monetary policy tightening in developed economies was seen as a sign rates will come down globally, feeding into the frenzy, with the November figure comparing to an outflow of $3.5 billion in October and inflows of $41.9 billion in November 2022.

"Emerging market local debt returns are gaining momentum, with the asset class poised for its best performance since 2019," IIF economist Jonathan Fortun said in a statement.

He added that the strong performance of EMs outside of China "is mainly explained by a more benign view on inflation across the market as well as the prospects of reduced rates in coming months."

That view may have hit a hurdle, however, following Tuesday's news that U.S. consumer prices unexpectedly edged back up in November. Traders now see May as the time when the Federal Reserve could begin to lower rates, with March having been favored as recently as last week.

Markets continue to price in a full percentage point of cuts in the Fed's benchmark rate through 2024.

Equity flows showed a $14.8 billion inflow in November following three months of outflows, while debt portfolios attracted $28.6 billion, the most since July 2021.

Flows to equities in EM ex-China ballooned to $14.2 billion, the highest in a year, while the $32.9 billion inflow into ex-China debt was the highest since October 2022.

Chinese equities saw a 0.6 billion inflow last month but the $4.3 billion outflow in debt made for the ninth net monthly outflow from China this year, the data showed.

Year-to-date estimates through November show a net $78.1 billion outflow from China, while emerging markets ex-China have seen $214.7 billion in net non-resident portfolio inflows.

"We see EM x/China debt and equities recovering from the outflow episode of the last three months," said Fortun. "This marks a clear bifurcation between China and the rest of EMs, suggesting a change in sentiment from investors."

(Reporting by Rodrigo Campos, Editing by Nick Zieminski and Chizu Nomiyama)

Popular

What you should know from the opening of China's legislature

China’s Premier Li Qiang promoted an image of confidence as he announced modest economic growth goals for the country at one of its most important political gatherings

US Navy says USS John Finn conducted routine south-to-north Taiwan Strait transit

BEIJING (Reuters) - The Arleigh-Burke guided missile class destroyer USS John Finn conducted a routine south-to-north Taiwan Strait transit on March 5, the U.S. Navy said in a statement on Tuesday.

Analysis-Chinese developers resume UK commercial property retreat

By Iain Withers and Marc Jones LONDON (Reuters) - Some big Chinese developers are set to offload more real estate in Britain to raise cash, property agents say, making the most of a slowly thawing

Blackrock sees India, Indonesia as promising for investment opportunities

JAKARTA (Reuters) - U.S. investment firm BlackRock sees India and Indonesia as two Asia-Pacific countries offering a lot of investment opportunities, its head of research for the region said on

Cryptoverse: Asian traders give bitcoin blast-off

By Jihoon Lee and Jaspreet Kalra SEOUL/MUMBAI (Reuters) - Bitcoin's runaway rally is being driven by investors in Asia.

Analysis-Boeing's Spirit Aero bid could help supply chain but is no cure-all

By Allison Lampert and Abhijith Ganapavaram (Reuters) - Boeing's possible takeover of Spirit AeroSystems, along with delaying plans to ramp up production of 737 MAX jets, could help the planemaker

Related

Thousands of Korean doctors face license suspensions as Seoul moves to prosecute strike leaders

Thousands of striking junior doctors in South Korea are facing proceedings to suspend their medical licenses Tuesday

AI pervades everyday life with almost no oversight. States scramble to catch up

Lawmakers in at least seven states are taking big legislative swings to regulate bias in artificial intelligence

Miami Beach is breaking up with spring break — or at least trying to

Miami Beach is trying to break up with spring break, but it’s not yet clear whether spring break will take the hint

Stocks skid as China's NPC disappoints, bitcoin nears record

By Kevin Buckland TOKYO (Reuters) - Chinese stocks stumbled on Tuesday, dragging Asian peers with them, as investors showed their disappointment at Beijing's plans to support the economy as its week-

- Advertisement -
Advertisement: Limited Time Offer