Thus it was not surprising to see this article in the WSJ
Flows Return to Emerging Markets
Investment
Flows Take Pressure Off Emerging-Market Governments
By
MICHAEL
S. ARNOLD in Hong Kong,
PATRICK
MCGROARTY in Johannesburg and
EMRE
PEKER in Istanbul
Updated June 17, 2014
1:29 a.m. ET
A fresh wave of investment inflows is taking the pressure off
some emerging-market governments that had at long laststarted to tackle
economic overhauls.
As investors fled from developing markets around this time last
year, in anticipation that U.S. interest rates would climb when the Federal
Reserve reined in its stimulus measures, central banks in Turkey, Brazil,
India, Indonesia and South Africa raised rates to stanch capital flight and
many nations promised tough economic measures to restore confidence.
Investment flows have since reversed, sparked by bets that
interest rates will remain near zero in the West well into next year. That has
allowed emerging-market nations to defer hard policy choices and could hold
back world economic growth.
Investors pulled $32.5 billion out of stocks and bonds of 30
emerging markets in June 2013, the height of market turmoil, according to the
Institute of International Finance Inc. Political upheaval in Ukraine in
January led to a further bout of outflows.
But investors have pumped $221.7 billion into emerging assets
over the past 11 months, including an estimated $45 billion in May, the highest
monthly total since September 2012.
No comments:
Post a Comment