Emerging markets: investors‘ search for yield is back on

After dumping a record $55bn of stocks and bonds in the eight weeks to mid-March, foreigners bought $4.1bn in emerging market assets in May. 

China has been the standout pick. © Getty

International investors are gingerly returning to emerging markets, says Avantika Chilkoti for The Wall Street Journal. After dumping a record $55bn of stocks and bonds in the eight weeks to mid-March, foreigners bought $4.1bn in emerging market assets in May.

The new investment is limited to favoured regions. China has been the standout pick, while non-residents also bought $1.6bn in Indian stocks in May. By contrast, the month saw $1.1bn pulled from stocks in Brazil and $880m from Turkey.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.