Investors have continued to flee emerging markets. In the week to 29 January, $6.3bn was pulled out of emerging-market stocks. That’s the biggest such withdrawal since August 2011.
The MSCI Emerging Markets Index has lost almost 7% this year, with some individual markets suffering double-digit declines.
Meanwhile, many emerging-market currencies have been battered, diving against the dollar (see below table for the hardest-hit major currencies). Interest-rate hikes by several central banks did little to stem the tide.
The tide goes out
“After several years of easy money and booming growth, the emerging world is struggling,” says [...]
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