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June 2024 brought $16.1 billion in portfolio inflows to emerging markets, including $11.2 billion into debt and $4.9 billion into equities. Chinese stocks experienced $1.3 billion in withdrawals. The figures separate positive aggregate investment from a continuing divergence between China and other equity markets.
Read the workEmerging markets received $5.5 billion in net portfolio investment in May 2024. Debt inflows of $11.5 billion outweighed equity withdrawals of $6 billion, including $0.7 billion from Chinese stocks. A positive headline balance therefore concealed substantial selling in equities rather than a broadly shared improvement in investment demand.
Read the workThe May 2024 forecast anticipates renewed nonresident investment in emerging markets as their growth and interest rate outlook improves relative to advanced economies. Direct investment remains the main source of external funding, with portfolio investment also recovering unevenly across regions. Weaker growth, geopolitical tensions and delayed Federal Reserve easing remain key risks to the baseline.
Read the workApril 2024 saw $8.2 billion in net portfolio inflows to emerging markets. Debt attracted $12.1 billion, offsetting equity withdrawals of $3.9 billion, including $0.6 billion from Chinese stocks. The positive aggregate therefore reflected bond demand rather than a recovery shared by both major asset classes.
Read the workThe evolution of global trade has made emerging economies increasingly important to international production networks. Regional fragmentation and the pandemic exposed weaknesses in those networks. The May 2024 overview examines how emerging markets respond to trade barriers and sanctions, creating new connections while established trading patterns diverge.
Read the workDiscussions at the 2024 Spring Meetings combined concern about fragmentation and political risk with recognition of US economic strength. That resilience also complicated the outlook for monetary easing. A prolonged period of high Federal Reserve rates could strengthen the dollar, raise borrowing costs and weaken the prospects for international capital flows.
Read the workEmerging markets attracted $32.7 billion in portfolio investment in March 2024. Debt inflows of $22.5 billion exceeded the $10.2 billion directed to equities, while Chinese stocks received $1.7 billion. Both asset classes contributed to the positive total, with bonds accounting for the larger share.
Read the workEnding Japan's extraordinary monetary easing marked a turning point, but full normalization remained distant in April 2024. The Bank of Japan's large government bond holdings and the market effects of yield curve control complicated the transition. Reducing that footprint gradually carried implications for the yen and public finances.
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