Global funds pulled out $24.4 billion from emerging markets over the past 15 weeks, with China-focused funds accounting for nearly $22 billion of outflows, according to a report by Elara Capital. In contrast, developed markets attracted $46 billion of inflows over the past eight weeks, led by a $23 billion inflow into the US, the highest seen in five weeks, and a record $20.2 billion allocation into globally mandated funds. Elara Capital said the widening divergence between EM and DM flows reflects investor preference for liquidity, stability and defensive positioning as geopolitical uncertainty intensifies following the Iran conflict and persistent crude oil volatility. The brokerage noted that elevated oil prices have triggered a broad "risk-off" shift across emerging markets, hurting sentiment toward cyclical and growth-sensitive sectors.