‘Investors pull $1.3 billion’

LONDON: Investors rattled by events in Turkey, China and South Africa have pulled $1.3 billion out of emerging-market stocks in the last week and $100 million from bonds, according to the Institute of International Finance, which tracks financial flows. An emerging-market selloff has picked up pace over the last week as concerns about Turkey and others have compounded longer-term worries about a global trade war, a strong dollar and rising borrowing and energy costs.

The Washington-based IIF said the exodus of investment money this week has largely been concentrated in South Africa and China, amounting to $600 million and $500 million, respectively. However, India has also turned negative this week as debt flows reversed, and Malaysia, Indonesia, Korea, Philippines and Vietnam have all seen money leave, albeit at moderate pace.

"Turbulence, amid heightened tensions between the U.S. and Turkey, has clearly weighed on investor appetitive for emerging market assets," the IIF said in a new report.