Emerging Market Outflows Surge Amidst Asian Stock Exodus
Emerging markets experienced significant capital outflows in March, with foreign investors withdrawing $70.3 billion, marking the largest outflow since the pandemic-induced market rout in 2020. The Institute of International Finance (IIF) reported that the outflows were primarily driven by a retreat from Asian equities, exacerbated by the geopolitical shock of the Iran war. The conflict has led to a 50% spike in oil prices, dampening investor risk appetite. Despite previous strong inflows, the geopolitical tensions have reversed the trend, highlighting the vulnerability of emerging markets to external shocks. 
