EMs ON A TEAR: Bank of America’s latest survey found a record 62% of fund managers were overweight EM equities in January. Two-thirds said EMs would be the top-performing asset class of 2021. Picture: Bloomberg/Nicky Loh
EMs ON A TEAR: Bank of America’s latest survey found a record 62% of fund managers were overweight EM equities in January. Two-thirds said EMs would be the top-performing asset class of 2021. Picture: Bloomberg/Nicky Loh

Investors have piled billions of dollars into emerging-market (EM) assets at the start of 2021 after a banner end to last year, showing how the flood of central bank stimulus continues to drive a frantic hunt for returns.

A group of 30 major developing countries has attracted $17bn in inflows in the first three weeks of January alone, according to a Financial Times analysis of daily data from the Institute of International Finance.

Financial Times

Hey, big spender

Brazilian President Jair Bolsonaro has outspent every other major EM, according to the Institute of International Finance, boosting central government spending almost 40% between January and November.

Most of the money was spent on "corona vouchers": a flat-rate temporary income boost for nearly a third of the population. The move lifted beer sales — and Bolsonaro’s popularity — but has proved ruinous for Brazil’s already shaky finances, with public debt now at over 91% of GDP.

Financial Times

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