Emerging market capital flows turn positive

Emerging markets are thriving, but “peak China” remains a risk: “Capital flows to emerging markets have turned positive for the first time since the second quarter of 2014, the Financial Times reports, saying “emerging markets attracted a net USD 28.6 bn of capital in the first quarter of 2017, a sharp improvement on the USD 238 bn that was shipped out of emerging markets in the last three months of 2016.” Even the New York Times, which can be relied on to pay scant attention to EM, is getting in on the act with a piece declaring that “Emerging markets are bouncing back from a six-year slowdown.” The note of caution: “anxieties that the world’s second-largest economy may have peaked,” the Financial Times says after a look at the most recent data.