LONDON, Feb 1 (Reuters) - Foreign investors poured $30 billion into emerging markets in January, a seven-month high and the best start to a year since 2015, according to data from the Institute of International Finance (IIF).
Over half this amount went into fixed income, the IIF said in a note sent to clients late on Wednesday. It said investors had injected $16.5 billion into emerging debt markets and $13.5 billion into emerging equities, the latter an 18-month high.
“Strong demand for U.S. dollar-funded carry trades, still attractive EM valuations and still-abundant global liquidity have been supportive for EM portfolio flows, though market turbulence late in the month prompted some pullback,” the IIF, one of the more authoritative trackers of global capital flows, said.
Emerging Asia attracted $19.9 billion and Latin America $7.3 billion.
Reporting by Claire Milhench; editing by Sujata Rao