JP Morgan: Emerging markets saw record sell-off this week with outflows rising to $3.6 billion.

According to JP Morgan's tracking of emerging market fund flows, after "Liberation Day", emerging markets experienced a record sell-off. Outflows from emerging market stocks accelerated significantly, increasing from $897 million last week to $3.6 billion, marking the largest outflow since the week of December 18, 2024. Trading open-end index funds (ETFs) saw outflows of $1.5 billion after 10 consecutive weeks of inflows (totaling $11.6 billion). Non-ETF funds continued to be net sold, with outflows increasing from $1.3 billion last week to $2.1 billion. Among the various regional funds, Asia saw the most severe outflows, reaching $2.8 billion, the highest level since the week of November 20, 2024. Global emerging markets (GEMs) saw moderate fund redemptions, with outflows of $833 million (compared to $728 million last week), while Europe, the Middle East, and Africa (EMEA) saw a shift from 11 consecutive weeks of inflows to outflows of $141 million. Only Latin America was positive this week, with inflows of $146 million. Excluding China, emerging markets saw outflows of $84 million. Year-to-date, total outflows from emerging market stocks amount to $1.16 billion. Outflows were widespread. South Korea experienced significant outflows, reaching $5.1 billion, marking the largest weekly sell-off since 2000. India saw a large outflow of $2.3 billion after two consecutive weeks of inflows. Brazil's outflows increased from $305 million last week to $949 million, and South Africa's sell-off expanded from $269 million to $625 million. Outflows in Taiwan eased from $31 billion last week to $358 million. Malaysia saw its highest redemption since August 2013, with outflows of $528 million, while other ASEAN regions also experienced strong outflows, with Thailand seeing outflows of $306 million, Indonesia of $293 million, and the Philippines of $79 million. Turkey experienced large outflows of $445 million (data lagging by a week), while Saudi Arabia saw moderate outflows of $110 million (data lagging by a week).