| NEW YORK, Sept 29
NEW YORK, Sept 29 Overseas investors added to
their holdings of emerging markets debt and equities this month,
bringing investment in the asset class to its highest total
since 2014, the Institute for International Finance (IIF) said
September's figures showed a continued recovery in capital
flows to emerging markets after a weak start to the year, the
IIF said, with non-resident portfolio flows rising to more than
$25 billion in September for a total of $64 billion in the third
September's numbers represent a sizeable uptick from about
$20 billion per month in July and August and an increase to 12
percent of investors' total portfolios, the highest level in
more than a year.
"After a weak start to the year, there has been a marked
recovery in capital flows to emerging markets," IIF said in the
statement. It attributed the revival to "the persistent hunt for
yield in the face of low to negative rates across mature
markets," along with a softer U.S. dollar and "signs of
improvement" in emerging market growth prospects.
It said yields on government debt in developed markets such
as Japan and the euro zone remained at or below zero percent.
China, the world's largest emerging market, continued to
show net outflows with more than $36 billion leaving the
country's debt and equity market in August.
But China's outflows have slowed, the report showed, as net
capital outflows for all emerging markets declined to $200
billion for the period through August from $290 billion for the
same period in 2015. The IIF estimated that China has seen $315
billion of total outflows year-to-date.
Excluding China, emerging markets saw net inflows of $119
billion through August, an increase of 20 percent from the same
period in 2015.
(Reporting by Dion Rabouin; Editing by David Gregorio)