Developing-nation stock funds post first outflow in 12 weeks
SHANGHAI: Emerging market equity funds posted the first net outflows in 12 weeks on concern that China will take further steps to curb inflation and the global economic recovery will slow, according to EPFR Global.
Developing-nation equity funds lost $608.5 million in the week ended Jan 27, EPFR Managing Director Brad Durham said. Those buying Asian stocks outside Japan had the only inflows, with China posting its first gain since mid-December. BRIC funds investing in Brazil, Russia, India and China had net sales for the first time since early September.
The MSCI Emerging Markets Index has dropped 3.7 percent this week, set for first three-week losing streak since March. JPMorgan Chase & Co said on Jan 26 it was turning "less bullish" on developing-nation equities in the first half of 2010 on concern central banks will tighten monetary policy.