By Summer Zhen HONG KONG, March 23 (Reuters) - Global hedge funds' selling of emerging Asia market stocks last week was the most since April 2025 amid heightened risk aversion, according to a Goldman Sachs client note seen by Reuters.

Once a top pick among emerging-market investors, local-currency debt is quickly becoming a pain trade. After months being boosted by a weaker dollar, slowing inflation and interest-rate cuts, the bonds have delivered a loss of more than 4.

Emerging markets stocks are carrying last year's momentum into 2026, and the Schwab Fundamental Emerging Markets Equity ETF is benefiting.

Emerging markets have surged recently, returning 14.83% year-to-date and nearly 50% over the past year—far outpacing developed markets.

The S&P 500 is down 1.6% so far in 2026. Meanwhile, emerging markets are up sharply, developed international markets are outperforming, and a decade-long valuation gap between US and non-US equities is finally closing.

By Libby George, Karin Strohecker and Rodrigo Campos LONDON, March 5 (Reuters) - The rush of cash out of risk assets has rattled emerging markets since war engulfed the Middle East, but some investors are betting that economic fundamentals and fragmented geopolitics will allow a year-long rally to resume.

By Maayan Lubell, Alexander Cornwell and Idrees Ali TEL AVIV/JERUSALEM/WASHINGTON, March 22 (Reuters) - U.S. President Donald Trump and Iran threatened to escalate their ⁠war by ⁠attacking energy facilities in the Gulf,