NEW YORK, February 2 (Reuters) – Developing countries’ stock and bond markets received $ 53.5 billion in net money in January. The money inflow experienced in the last quarter of last year thus maintained its pace in January.
According to the data announced yesterday by the Institute of International Finance (IIF), foreign investors made a portfolio inflow of $ 9.4 billion to emerging market stocks and $ 44.2 billion to bonds last month.
Thus, there was a net foreign capital inflow to emerging markets for the tenth month in a row.
In the published IIF report, “We continue to be relatively constructive in terms of outlook. Given the high liquidity in the market, new developments in vaccines and the increasing risk appetite of investors, we state that there is a potential for more foreign capital inflows into emerging markets.” It was said.
Also in the report, “However, the ‘significant capital outflow’ in Asia in the last week of the month reminded us of the weakness that could continue in emerging markets in the post-coronavirus period.” It was said.
According to the report, China stocks inflow of $ 6.2 billion, while the stocks of emerging markets other than China attracted $ 2.7 billion in investment. As for debt instruments, a total of $ 15.4 billion was inflowed into China from abroad, while $ 29.5 billion was inflowed into the rest of the emerging markets.
In the last quarter of last year, foreign investment in emerging markets reached its highest level since 2013.
By: Rodrigo Campos
Translated by: Oben Mumcuoglu
Editorial: Can Sezer
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