# Foreign investors pull $26.3bn from emerging markets

> Foreign investors withdrew $26.3 billion from emerging-market stocks and bonds in September as the Fed raised rates.
- Title: Foreign investors pull $26.3bn from emerging markets
- Summary: Foreign investors withdrew $26.3 billion from emerging-market stocks and bonds in September as the Fed raised rates. Foreign investors pulled $26.3 billion…
- Keywords: foreign investors, emerging markets, us treasury yields, hawkish fed, september 2023, emerging market equities, korean equities, iif, money, business, Foreign, investors
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/us-stocks/wall-street-guide/foreign-investors-pull-out-26-3-billion-from-emerging-markets-in-september-as-hawkish-fed-pushes-us-treasury-yields-higher/articleshow/134772977.cms
- Published: 2026-10-07T18:26:00+00:00
- Read time: 1 min
- Topics: foreign investors, emerging markets, us treasury yields, hawkish fed, september 2023, emerging market equities, korean equities, iif, money, business
## Foreign investors pull $26.3bn
Foreign investors withdrew $26.3 billion from emerging-market stocks and bonds in September, marking the first monthly outflow since June.

> Foreign investors withdrew $26.3 billion from emerging-market stocks and bonds in September, marking the first monthly outflow since June
## Hawkish Fed pushes US yields higher
The Federal Reserve raised interest rates for the first time since 2023, signaling inflation remained a concern and pushing US Treasury yields higher.

> The Federal Reserve raised interest rates for the first time since 2023, signaling inflation remained a concern and pushing US Treasury yields higher
## First net outflow since March
Non-resident investors pulled $7 billion from emerging-market fixed-income assets, resulting in the first net outflow since March.

> Non-resident investors pulled $7 billion from emerging-market fixed-income assets, resulting in the first net outflow since March
## Korean equities drive $19.2bn outflow
Heavy foreign selling in South Korea drove a $19.2 billion outflow from emerging-market equities in September.

> Heavy foreign selling in South Korea drove a $19.2 billion outflow from emerging-market equities in September
## AI tech rally cools
Investors locked in gains from richly valued semiconductor and technology stocks as the AI-driven tech rally cooled.

> Investors locked in gains from richly valued semiconductor and technology stocks as the AI-driven tech rally cooled
## Outflows exceed previous year
Emerging markets saw year-to-date equity outflows of $113.9 billion, compared with $27.3 billion in the same period last year.

> Emerging markets saw year-to-date equity outflows of $113.9 billion, compared with $27.3 billion in the same period last year
## Key takeaway

Foreign investors pulled $26.3 billion from emerging markets in September due to hawkish Fed policies pushing US Treasury yields higher.