Emerging market stocks suffer $700 mln of outflows in Jan, debt inflows jump

LONDON, Feb 4 (Reuters) - Emerging market equities were hit by $700 million in portfolio outflows in January, their first negative shock since the sharp selloff in August as inflows into China shrunk, the Institute of International Finance said on Tuesday.

Debt inflows to emerging markets picked up significantly during the month, adding $29.7 billion, almost as much as the $31.4 billion they netted in the fourth quarter of 2019, the IIF said.

“These dynamics support our cautious view about the long-term strength of non-China equity flows due to positioning overhang and secular stagnation in EM (emerging markets),” IIF said.

Reporting by Tom Arnold, editing by Karin Strohecker