The bulk of the outflows came from equities, which have lost
$3.4 billion since flows turned negative on Jan. 30, the IIF
said. South Korea, Indonesia and Thailand suffered the worst
losses.
MSCI's benchmark emerging markets index has fallen over 6
percent since the start of the month and was set for its worst
daily fall since November 2016 on Tuesday, tumbling 3 percent.
Investors have scrambled for the exits after data on Friday's
showed the largest U.S. wage growth since 2009. That has fueled
speculation the Federal Reserve will raise U.S. interest rates
faster than had been expected, which would mean higher borrowing
costs for emerging markets.
"While we remain generally optimistic on EM flows this year,
downside risks should not be understated," the IIF said. "A
sustained global equity market sell-off would clearly be one
such downside risk."
(Reporting by Claire Milhench, editing by Larry King)
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