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Emerging markets see $31.2 billion in non-resident flows in February: IIF

Kitco News

NEW YORK (Reuters) - Emerging market stocks and bonds saw foreign net inflows of about $31.2 billion in February, though rising U.S. rates triggered a slowdown during the last week, data from the Institute of International Finance showed on Tuesday.

The $31.2 billion was the lowest monthly figure since August and compares with $52.5 billion net inflows in January.

Non-resident portfolio inflows to emerging market equities hit $8.4 billion last month and debt instruments attracted $22.8 billion, according to the IIF.

Of the flow to equities, $7.8 billion - or 93% of the total - went to Chinese stocks. The $0.6 billion net inflows to the other emerging markets was the lowest reading since outflows of over $6 billion in October for the region, according to IIF data.

“The positive momentum at the beginning of 2021 has scaled down, hurting equity flows particularly,” the IIF said in a statement.

On the debt side, flows to China totaled $9.3 billion, the lowest in 10 months, while the rest of EM funneled $13.5 billion, just above the $12.1 billion average over the previous 12 months.

Reporting by Rodrigo Campos; editing by Jonathan Oatis

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