Foreign investors poured a record $95 billion into emerging market equities and bonds in November, the highest monthly inflow since records began. India and Brazil led the surge, benefiting from improving economic fundamentals and attractive valuations.
The Indian stock market reached new all-time highs as foreign institutional investors added $12 billion to their holdings. Strong corporate earnings and government infrastructure spending are driving optimism about the country's growth prospects.
Brazil attracted significant inflows following successful fiscal reform measures. The real strengthened 8% against the dollar in the fourth quarter, rewarding foreign investors with additional currency gains.
"Emerging markets offer compelling value relative to developed markets," said EM strategist Carlos Rodriguez at JP Morgan. "Growth differentials are widening in favor of developing economies."
However, China remained an outlier, with continued foreign outflows amid concerns about the property sector and geopolitical tensions. Chinese equities have underperformed emerging market peers by 15 percentage points this year.
Hotnews is a popular website featuring news from various fields, such as politics, business, sports, and entertainment. The site publishes current information and reports on topics important to society. Readers can also find expert commentary and analysis as well as videos and photos illustrating the events being discussed. Hotnews is a valuable source of information for those who want to stay up-to-date with the latest news.
