Global emerging markets (EMs) cinched foreign portfolio inflows of $36.8 billion in March, the strongest month since June 2014, with Asia leading the way, according to the Institute of International Finance (IIF).
Both EM bonds and equities saw robust inflows on a combination of accommodative central banks and bargain hunting, the IIF said in a new report on Tuesday.
"In the absence of much improvement in the fundamental economic outlook for EMs, it appears that March's surge was mainly due to a global risk-on shift in investor behavior and lower mature market interest rates, supported by surprisingly dovish signals from the FOMC [Federal Open Market Committee] on March 16."
March's intake was also well above February's $5.2 billion reading and beat the 2010-2014 average of $22 billion.
The inpouring ended on March 24, having lasted nearly a full month, making March the second-longest episode of surging inflows since the IIF started publishing flows data.
A look at the IIF's regional breakdown showed Asian EMs attracted $20.6 billion, over half of the total EM inflows.