LONDON, Sept 18 (Reuters) - Investors piled into developed market stocks in the latest week but again pulled funds out of emerging markets, as they adjusted their portfolios before the U.S. Federal Reserve's interest rate decision, Bank of America Merrill Lynch said on Friday.
The equity market inflow was the biggest in 10 weeks and the biggest U.S. market inflow this year. The outflow from emerging market stocks marked their 10th consecutive loss.
A net $23.8 billion flowed into equity funds in the week to September 16, although that included an unusually large $11.4 billion inflow into a major U.S. exchange-traded fund.
For emerging market stocks, the "silver lining" was the $2.2 billion outflow was the smallest in 10 weeks, BAML said.
Year-to-date outflows from emerging stocks total $60.34 billion. Developed market equities have attracted a net $76.58 billion, BAML said in its weekly report.
The Fed kept interest rates on hold on Thursday, citing worries over weak global growth, particularly China, rising market volatility and the downward pressure on inflation from the strength of the dollar.
The data, which also includes flow figures from data provider EPFR Global, showed that Japanese equity funds drew in $5.1 billion, the largest since April last year. Investors have poured money into these funds in 28 of the past 30 weeks.
European stocks attracted a net $2 billion, marking the 17th net inflow out of the last 18 weeks. The $16.7 billion flow into U.S. equity funds was the largest this year, BAML said.
In fixed income, investors pulled $1.9 billion from emerging market bond funds, the eighth straight weekly outflow, and extended the run of consecutive weekly inflows into government bond funds to 11 with a small $100 million net inflow.
High-yield bond funds ended a run of seven weekly outflows with a small $89 million inflow, and municipal bond funds posted a sixth straight weekly outflow, this time of $500 million, BAML said. (Reporting by Jamie McGeever; Editing by Larry King)