The Institute of International Finance (IIF) said in its latest report published late-Wednesday, the escalating US-China trade tensions was the main reason behind the capital flight from the Emerging Markets (EMs) in the recent weeks.
“The emerging market exodus was led by Chinese equities, which saw outflows of $1.5 billion on Monday, after investors took $2.5 billion off the table last week.”
“Outflows from Taiwan hit $400 million on Wednesday, and other emerging Asian countries, such as South Korea, India and Indonesia, “have mirrored China’s trend, highlighting the risks to the broader EM complex from increased US-China trade tensions.”
“IIF said recent outflows came to around $1 billion, largest since last October’s $1.1 billion.”
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