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EM EMEA equities outperform as Poland, South Africa and Turkey draw buying

BNY data cited by FXStreet show Poland, South Africa and Turkey were among the top five best-bought equity markets since just before the July Fed meeting.

Reported · Written up by our desk · EM Currencies

BNY’s Geoff Yu says EM EMEA equities have outperformed, with flow data pointing to persistent buying in Poland, South Africa and Turkey since before the July Fed meeting, despite weakness in some regional currencies and bonds, according to an FXStreet write-up.

Yu argues the flows are not behaving like a broad “EM beta” trade tied to U.S. equity diversification, instead reflecting country-specific and sectoral drivers across a diverse region.

FXStreet reports Yu also cautioned against reading a single narrative into EM equity performance, noting that if lower USD real rates or wider weakness in global real rates is a factor, some markets could still benefit through duration lift and dividend yields.

Finally, Yu said he does not see a uniform U.S. theme in EM equity flows, adding that a “debasement” narrative would more likely benefit EM Americas due to heavier commodity exposure, which was the case in Q1 for markets such as Brazil and Peru.

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