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Emerging markets suck in $17.9 billion during October - IIF

U.S. dollar banknotes are seen in this photo illustration taken February 12, 2018. REUTERS/Jose Luis Gonzalez/Illustration/File Photo

LONDON (Reuters) - Emerging markets sucked in $17.9 billion of portfolio flows in October, up from $7.5 billion the month before, buoyed by an improving outlook for the global economy and strength of the tech sector, data from Institute of International Finance showed.

But while those factors benefited capital flows at the start of the month, fresh angst about a second wave of the coronavirus pandemic and uncertainty arising from the U.S. election limited the surge towards the end of October.

Debt accounted for the majority of inflows, mostly to emerging Asia and China, as investors were attracted by a steady pipeline of external issuance. Debt inflows were around $11.7 billion during the month.

Equities were more sensitive to political risk and uncertainty stemming from the upcoming U.S. election. Equity inflows stood at $6.3 billion, of which $4.7 billion were to China.

Reporting by Tom Arnold; editing by Karin Strohecker