Photo: screengrab from the official website of Brasil 247

By Brasil 247 – Brazil has stood out among emerging markets after recording strong inflows into equity funds, defying the global trend of capital withdrawals. According to Brasil 247, citing data from JPMorgan released Monday by InfoMoney, local equity funds received $883 million — about R$4.5 billion — in recent investments despite an unfavorable international environment.

During the same period, emerging market equity funds registered another week of losses, with outflows totaling $3.9 billion, expanding on the previous week’s withdrawals of $654 million. Brazil’s performance diverged from the prevailing trend and reinforced the perception that foreign investors continue to see opportunities in the country.

The survey indicated that, although investments made through ETFs and traditional funds were not broken down by country, most inflows appear concentrated in index funds. The movement suggests a broader exposure strategy to the Brazilian market, particularly following the recent stock market rally.

Foreign inflows have also been reflected directly in Brazil’s stock exchange, B3. In the last month alone, international investors allocated R$11.7 billion. In the first quarter of 2026, total inflows reached R$53 billion across all investment modalities.

Across Latin America, conditions also improved. After outflows of $111 million in the previous week, regional funds returned to positive territory with inflows of $199 million, equivalent to about R$1 billion. Brazil had already stood out the week before, recording inflows of $475 million.

Among Brazilian sectors, energy posted stronger performance, ranking behind only Mexico’s communication services segment. By the end of March, the financial sector also gained prominence, outperforming the market for the fifth consecutive trading session. Other sectors showing solid performance included capital goods, steel and mining, and education. Meanwhile, consumer and retail, agribusiness, and oil and gas ranked among the weakest performers during the period.

Globally, pressure on emerging markets was led by Asia excluding Japan, which recorded significant outflows of $5 billion after modest inflows the previous week. The EMEA region — covering Europe, the Middle East and Africa — registered its fifth consecutive week of withdrawals, totaling $124 million.

Middle Eastern countries were also affected. The United Arab Emirates recorded net sales of $166 million, while Qatar registered outflows of $32 million, amid persistent geopolitical uncertainty involving Iran, which has weighed on regional risk appetite.

Despite recent volatility, total inflows into emerging market equity funds remain positive in 2026, reaching $73.6 billion so far this year, below the peak of $86.1 billion recorded in early March but still at a significant level on a year-to-date basis.

(Reported by Brasil 247 on April 6, 2026)