Foreign investors are ditching emerging market assets at the fastest pace since the US election

It’s not all that surprising, given the price action seen since the end of January, that in recent days foreign investors have been ditching emerging market assets at a pace not seen since the US election.

This shows non-resident portfolio flows in and out of emerging market assets since the start of the year. It comes courtesy of the Institute of International Finance (IIF).

Source: IIF

After buying aggressively in January, flows have done an abrupt about-face in early February.

“The countries that we track have registered nearly $US4 billion in outflows since flows turned negative on January 30. In line with market performance, most of that — some $3.4 billion — has been outflows from stocks,” the IIF says.

“While Korea, Indonesia and Thailand registered sharp outflows, investors’ appetite for Indian stocks and bonds remained relatively solid.”

This next chart breaks down outflows by individual nation.

Source: IIF

Based on what was seen on Wall Street overnight, those outflows could get a whole lot larger in the session ahead.

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