Emerging market outflows reached 70.3 billion dollars
Investors pulled 70.3 billion dollars from emerging markets in March. This outflow was driven by Asian equity sales following the start of the Iran war.
Emerging market assets experienced a significant retreat in March as foreign investors withdrew $70.3 billion, marking the most substantial monthly outflow since the onset of the pandemic in early 2020. Data from the Institute of International Finance (IIF) indicates that while both equity and fixed-income sectors saw withdrawals, the exodus was predominantly driven by equity sell-offs in Asian markets. This movement represents a sharp departure from the robust inflows recorded in January and February. The IIF characterized the shift as a regime break triggered by the outbreak of conflict in Iran, which disrupted global risk appetite and spiked energy costs. Equity outflows alone reached $56 billion, the highest level recorded in at least two decades.
