Global Research16 February 2024J P M O R G A Nwww.jpmorganmarkets.comEmerging Markets Equity StrategistJainik Mody, CFA AC(44-20) 3493-0443jainik.mody@jpmorgan.comJ.P. Morgan Securities plcPedro Martins Junior, CFA(55-11) 4950-4121pedro.x.martins@jpmchase.comBanco J.P. Morgan S.A.Anindita Gandhi(91-22) 6157-3248anindita.gandhi@jpmorgan.comJ.P. Morgan India Private LimitedAPAC Equity StrategistWendy Liu(852) 2800-1087wendy.m.liu@jpmorgan.comJ.P. Morgan Securities (Asia Pacific) Limited/ J.P. Morgan Broking (Hong Kong) LimitedRajiv Batra(65) 6882-8151rajiv.j.batra@jpmorgan.comJ.P. Morgan Securities Singapore Private LimitedCEEMEA Equity StrategistDavid Aserkoff, CFA(44-20) 7134-5887david.aserkoff@jpmorgan.comJ.P. Morgan Securities plcLatAm Equity StrategistEmy Shayo Cherman(55-11) 4950-6684emy.shayo@jpmorgan.comBanco J.P. Morgan S.A.EM equity inflows decelerated to +$230mn this week (from +$479bn last week). ETF subscriptions nearly halved to +$950mn from+$1.8bn while the sell-off in non-ETFs eased significantly (-$720mn, from -$1.3bn). Among regional funds, GEMs reverted to marginal outflows of -$70mn after two weeks of subscriptions. Only Asia ex-Japan recorded inflows (+$358mn, from -$292mn) while LatAm posted outflows after one week in the green (-$55mn, from +$174mn). EMEA saw marginal sell-off (-$3mn, from +$85mn) . EM equity flows YTD are -$389mn.Mixed trends across EM Markets. Korea inflows came in strong albeit slower than the all-time high of last week (+$1.4bn, from +$3.1bn). In ASEAN, Indonesia (+$211mn, +$1.7bn total) as well as Malaysia (+$86mn, +$424mn total) posted strong subscriptions and extended their inflow streaks to nine weeks each while Philippines (+$39mn) also recorded net buying. Of markets that report with one-week lag, Saudi (+$211mn) and Turkey (+$37mn) saw subscriptions last week. On the negative side, India outflows accelerated to -$709mn from -$93mn last week while Thailand flows turned negative after one week of inflows (-$156mn, from +$168mn). Brazil saw -$482mn in outflows in a shorter week due to Carnival holidays while redemptions in South Africa narrowed to -$31mn (from -$89mn). Taiwan and Vietnam were closed due to Chinese New Year holidays. EM bond flows were -$790mn this week, -$3.3bn YTD - see report.Table 1: Regional Fund Flows1y RangeUSD billionCurrentYTDvs 1wMinMaxEM Equities0.2-0.4▼-3.32.0GEMs-0.11.1▼-2.51.5APAC0.4-1.1▲-1.91.4EMEA0.00.0▼-0.20.1LatAm-0.1-0.4▼-0.20.4Dev. Europe-0.8-7.8▲-4.60.9US11.00.8▲-17.926.4International1.910.4▲-9.15.5FlowsOutflow Inflow Zero7-Feb14-Feb1y Range4w RangeSource: EPFR Global. *ex onshore fund, ** Total EM Equity includes GEMs, LatAm, EMEA, and Asia ex-Japan.Figure 1: EM equity ETF flows vs MSCI EM-10%-5%0%5%10%-3-2-10123456Mar-23May-23Jul-23Sep-23Dec-23Feb-24US$bn1w ETF flows2w MSCI EM Return (rhs)Source: EPFR Global, MSCI.Figure 2: Annual cumulative EM equity flows3.2100.8-4.13.4(0.4)-50-250255075100125Jan Feb Mar Apr May JunJulAug Sep Oct Nov...
