Emerging markets rebound on inflows as Xi-Trump talks eyed for momentum

Mainland China, Hong Kong stock markets may benefit from Xi-Trump meeting as renewed interest in AI shows investors keen to re-engage, analysts say Global funds came back to emerging markets in April with an inflow of US$58.3 billion, which is expected to continue in coming months amid the recovery from the previous geopolitical panic. According to a report by the Institute of International Finance (IIF), the April non-resident portfolio growth in emerging countries – varying from China to Brazil – rebounded sharply, reversing the outflow of US$66.2 billion in March and US$42.2 billion in April last year. The swing indicated that investors were willing to re-engage quickly once the initial geopolitical panic faded and primary market windows reopened, said Jonathan Fortun, senior economist at the IIF, in a note on Monday. The capital inflow in April was recorded in both stocks and credit. IIF recorded an influx of US$6.4 billion in equity markets and US$51.9 billion from debts, versus an outflow of US$65.5 billion and US$700 million last month respectively.

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