Economics
Emerging Markets Crack as $3.9 Trillion Funds Unwind: Currencies
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Investors are pulling money from emerging markets at the fastest pace in two years as slowing economic growth and the prospect of less global stimulus sink stocks, bonds and currencies from India to Brazil.
More than $19 billion left funds investing in developing-nation assets in the three weeks to June 12, the most since 2011, according to EPFR Global. Foreign investors dumped an unprecedented $5.6 billion of Brazilian stocks and $3.4 billion of Indian bonds this month, exchange data show. The tumble that has sent JPMorgan Chase & Co.’s emerging-currency index down 1.4 percent this quarter extended today as the rupee and Turkish lira hit record lows.