The MSCI index fell more than 15 percent in a month after fund outflows reached more than one percent of assets in August 2001, while the gauge retreated 6.5 percent when withdrawals exceeded that level in May 2006, data compiled by EPFR and Bloomberg show.

This week's retreat in emerging-market share prices has produced buying opportunities and slowing growth in the developed world may ease inflation pressures in developing nations, said Ivo Kovachev, an emerging-markets money manager at London-based JO Hambro Capital Management Ltd.

The People's Bank of China will leave borrowing costs unchanged for the rest of this year, according to eight of 10 analysts surveyed by Bloomberg this week. The Bank of Korea kept interest rates unchanged for a second month on Aug. 11, while Indonesia stayed on hold Aug. 9.

"There has been a growth scare in the world," said Kovachev. "But perhaps a bit perversely, it may help emerging markets because this year they were suffering from overheating and inflation risk."

 

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