Capital movements in financial markets often carry surprises. In the first quarter of this year, the flow of funds into emerging markets grew rapidly. This is at a time when markets around the world were anticipating a rate hike from the US Federal Reserve later this month. Normally, when the Fed rate goes up, funds flow out of emerging markets.

What's happening now is the reverse. Until March 8, the MSCI Emerging Markets index increased by 8.4 per