Net selling of emerging market assets by global ETFs and mutual funds was almost as heavy in February as it was in January according to EPFR Global. The crisis in Ukraine, growing concerns about the health of China’s economy, and the US Fed’s shift towards less accommodative monetary policy all dulled investors’ appetite for risk. Data from six stock exchanges in Emerging Asia suggest that foreign demand for equities in these countries as a set has grown in March. But this has not led to a reversal of the underperformance of equities in Emerging Asia as a whole vis-à-vis their counterparts in developed markets.
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