A number of emerging market indexes were pushed to multi-year highs according to the latest release by EPFR Global, attributed to expectations of a US Federal Reserve rate hike being pushed back until June at the earliest.
EPFR Global also found emerging market bonds took in fresh money for the seventh time in the past eight weeks.
Latin America benefitted the most from the positivity, with Brazilian equity funds recording their biggest inflows since late 2014 as consistent growth in China, Europe and the US shored up expectations that demand will continue for the nation’s commodity exports.
Flows into Argentina were also up and hit a 15-week high as a result of improving crop forecasts and hopes the central bank will meet its inflation target, EPFR said.
The positive numbers come after the World Bank predicted emerging market countries would grow 3% faster than developed nations in the next three years.
