Emerging market-focused stocks battered

Financials with exposure to emerging markets, such as StanChart, Aberdeen Asset Management and Ashmore Group were near the bottom of the pile, amid worries of capital outflows from emerging markets as US interest rates climbed higher, in part on the prospect for increased fiscal spending Stateside.

Indeed, daily bond and equity flow data published by a smattering of emerging markets suggested that portfolio inflows had weakened even before the US elections, analysts at Capital Economics said, referencing their Emerging markets Capital Flows Monitor for October.

"The sell-off in EM financial markets following Donald Trump’s presidential victory suggests there has been some disruption to EM capital flows this month. So far, it doesn’t seem to have been as large as that following the UK’s Brexit vote, but the situation remains uncertain," they said.

Total capital outflows from emerging markets edged down from $55.0bn in September to $40bn in October, the think-tank said.

That was just one third the size of the outflows seen at the turn of the year and broadly in-line with the monthly average recorded over the three months to September.

On the other hand, total portfolio inflows were little changed, having held at about $40bn a month since June after picking up sharply since the start of the year.