Emerging market foreign capital inflows drop to $1.2 bln in May -IIF
NEW YORK, June 3 (Reuters) - Emerging markets portfolio investment from foreign investors slowed to a net $1.2 billion in May after touching $17.3 billion in April and $26.4 billion in March, an industry body said on Friday.
While non-resident investors added $2.6 billion into fixed-income emerging market investments, they pulled $1.4 billion out of emerging market stocks, according to a statement from the Institute of International Finance, a global banking group that tracks investment flows.
The foreign investor data showed a net outflow in May of investment in emerging markets in Europe and the Mideast-African region. Portfolio investment inflows to emerging Asian economies were $7.7 billion last month while Latin American markets attracted net inflows of $1.1 billion.
Investors became wary of emerging market assets as the perceived probability increased that the U.S. Federal Reserve would be raising overnight interest rates in the coming months, the IIF said in the note.
Data showing reduced inflows into emerging market assets and mounting investor concern over these nations' growth prospects contributed to waning demand for these investments, the IIF said.
(Reporting by Dion Rabouin Editing by W Simon)
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