Emerging markets suffered their biggest outflows last week since the depths of the global financial crisis, with global investors withdrawing $9.3 billion, according to data from EPFR Global.
Asia was the most vulnerable as $7.1 billion left the region's equity markets, after U.S. index provider MSCI delayed adding mainland-listed A-shares to one of its benchmark indexes.
Meanwhile, global emerging market funds lost $829 million, while Latin America funds saw the withdraw of $442 million.
The pulling-out of capital came on the back of a selloff in Treasurys and German bunds as the Fed prepares to raise interest rates later this year.
According to Societe Generale, the weakness in emerging markets appears set to continue through the summer. "We recommend outright short EM FX positions against dollars and curve steepening trades in local rates," analysts wrote in a report issued last Friday.
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