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Demand for non-US assets revives flows into emerging markets: Macquarie
Investors are narrowing spreads between US and non-US assets
Samie Modak New Delhi
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Emerging markets (excluding China) saw $13 billion in foreign inflows in May — the highest since December 2023 — according to Macquarie. This surge, following months of outflows, was driven by renewed investor appetite for non-US assets. India ($2.3 billion), Taiwan ($7.6 billion), and Brazil ($2 billion) led the inflows.
Macquarie strategists Viktor Shvets and Kyle Liu noted that 'American exceptionalism is eroding gradually, not collapsing,' which is fostering a slow rise in US risk premia and avoiding disorderly asset repricing. Investors are narrowing spreads between US and non-US assets, benefiting the Eurozone, Japan, and emerging markets with strong secular
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