Foreign investors pull $26.3B from emerging markets in September
In short
Foreign investors pulled $26.3 billion out of emerging markets in September. The sell-off came as US Treasury yields rose after a hawkish Federal Reserve rate hike, and it was the first outflow since June.
This matters because it can pressure stocks and bonds in developing markets. The report does not say how long the selling will last or which countries were hit most beyond South Korea.
What the reporting says
Foreign investors pulled $26.3 billion from emerging-market stocks and bonds in September, according to the publisher summary. The selling was linked to rising US Treasury yields after a hawkish Federal Reserve rate hike, and it marked the first outflow since June. Heavy foreign selling in South Korea also hit emerging-market equities. What remains unclear is how much of the move was temporary versus a longer trend.
Why it matters
Foreign investors withdrew $26.3 billion from emerging-market stocks and bonds in September, with the move tied in the summary to higher US yields after a hawkish Fed rate hike. The report says this was the first outflow since June and notes heavy foreign selling in South Korea. Year-to-date figures in the summary show a split between asset classes, but the longer-term cause of the shift is not stated.