(Corrects number to $9 billion in para 1 and headline)
LONDON Jan 31 Investors yanked $9 billion from
emerging stock and bond funds during a turbulent past week, with
equities seeing their biggest outflow in 2-1/2 years, banks said
on Friday citing data from Boston-based fund tracker EPFR
EPFR had released data to clients late on Thursday showing
emerging equity funds lost $6.3 billion in the week to Jan. 29,
the biggest weekly outflow since August 2011.
This week has seen some major falls in emerging currencies'
exchange rates, with central banks forced into rate rises or
market interventions to limit the swings. Those currency losses
and rate rises have put pressure on bond and stock holdings,
Year-to-date outflows from emerging stocks already amount to
$12.2 billion, close to the $15 billion that fled during the
whole of last year, the data showed. Index-tracking exchange
traded funds (ETFs) accounted for two-thirds of the exodus.
Equity funds tracked by EPFR have seen outflows for 14
straight weeks, matching a loss-making streak seen in the third
quarter of 2002, banks said.
Debt funds likewise lost money, shedding $2.7 billion or 1.2
percent of their assets under management, banks said. That
brings outflows so far in 2014 to $4.6 billion, compared with
$14.3 billion for the whole of last year.
MSCI's benchmark equity index has fallen 6 percent this
month, while data from JPMorgan indexes shows domestic
emerging bond yields have risen 30 basis points and sovereign
dollar bond yields have risen 40 bps.
The turmoil has also spread to developed markets, where
equity funds shed almost $5 billion in the week to Thursday.
(Reporting by Sujata Rao; Editing by David Holmes)