Emerging Market Equities See $46 B June Outflow, Led by South Korea and Taiwan

In June 2026 foreign investors withdrew roughly $46.1 billion from emerging market equity portfolios, the largest monthly outflow in more than 25 years. The steepest sell‑offs were in South Korea ($30.5 billion) and Taiwan ($18.3 billion), while China shifted to a $14 billion equity outflow.

At the same time, emerging‑market debt attracted $28.3 billion of inflows, partially offsetting equity losses. A related trend saw almost $12 billion of the $20 billion raised for India‑focused equity funds since the 2023‑24 rally redeemed, with $9 billion withdrawn in 2026 alone. Redemptions were led by investors in Luxembourg, the United States and Japan. Analysts cite a hawkish U.S. Federal Reserve, oil‑price volatility, tighter dollar liquidity, higher funding costs and worries about China’s economic outlook as key risk factors.