US Federal Reserve stayed away from hiking rates for the first time in almost a decade, however majority of the analysts believe that won't help emerging markets much. There could only be temporary relief but stampede is likely to continue further.
Latest fund flow report from EPFR, a global provider of fund statistics show that investors continued to head for exit from Emerging market.
Outflows from EM equity funds totaled $2.2 billion in the week to September 16th, which makes it 10th consecutive weekly outflow.
Investors pulled out $1.9 billion from debt funds for the same period, making it 8th consecutive weekly outflow.
So far this year, investors have now pulled more than $60 billion from equity funds and 13.5 billion from debt funds.
Chinese slow down and its handling by concerned authority is likely to have much larger impact on Emerging markets than FED rate hold.