INSUBCONTINENT EXCLUSIVE:
Even as the US central bank continues on its rate-hike path, the risk of capital flight from developing nation assets has diminished, money
managers from Bank of America Merrill Lynch to JPMorgan Chase say
well-communicated.
Riskier assets including emerging markets remain vulnerable to global fund outflows during times of Fed tightening as
investors seek safer instruments such as US Treasuries
nation assets advanced in the wake of rising US interest rates
History suggests that a robust US economy is more important to emerging market fortunes than fluctuations in fund allocations.
That
relationship was evident on November 2 when the MSCI Emerging Markets Index, which was rallying on trade optimism, maintained its gains even
as the official jobs data showed US employers hired more than forecast in October
