{
  "id": 12656573,
  "title": "Hawkish Fed triggers emerging market outflows in September",
  "url": "https://urgent.news/2026/10/07/hawkish-fed-triggers-emerging-market-outflows-in-september",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T15:35:00.000Z",
  "source": {
    "name": "Straits Times Business",
    "slug": "straits-times-business",
    "url": "https://www.straitstimes.com/business/hawkish-fed-triggers-emerging-market-outflows-in-september"
  },
  "original_language": "en",
  "account": "Foreign investors withdrew US$26.3 billion from emerging market stocks and bonds in September, marking the first monthly outflow since June, according to a report by the Institute of International Finance (IIF). This came as a hawkish US Federal Reserve increased yields and the dollar, amid concerns over inflation. Non-resident investors pulled US$7 billion from the emerging market fixed income sector during the same period, the first net outflows since March. The Fed's decision to raise rates for the first time since 2023 and signal continued inflation concerns contributed to the pressure on emerging markets. The report added that a hawkish Federal Reserve projecting further rate hikes, along with the Bank of Japan at its highest policy rate since 1995 and tightening across advanced economies, raised the hurdle for emerging market carry into the fourth quarter. Heavy foreign selling of South Korean stocks was also identified as a major factor, resulting in a US$19.2 billion outflow from emerging market equities in September. This followed a 62% rise in the KOSPI in 2026 and coincided with a cooling in the AI-driven technology rally that had buoyed several Asian markets. Across the fixed income universe, all regions experienced outflows in September, though the asset class had still received a year-to-date inflow of US$246 billion from foreign portfolio investors. However, the situation was more challenging for equities, with year-to-date outflows now totaling US$113.9 billion, compared to US$27.3 billion over the same period in 2025. Excluding China, the total outflows reached US$151.5 billion.",
  "summary": "It is the first monthly outflow since June.",
  "key_points": [
    "Foreign investors withdrew $26.3 billion from emerging markets in September",
    "Hawkish Fed raised yields and the dollar amid inflation concerns",
    "Heavy selling of South Korean stocks led to $19.2 billion outflow from equities"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}