At the same time, the prices of many financial assets seen as risky have fallen abruptly. Emerging-market bonds, equities and currencies were affected by the change in market sentiment. Also contributing to lower asset holdings and values has been a weaker relative outlook for growth in emerging economies. However, not all countries have been treated equally.
Investors have differentiated among destinations according to macroeconomic fundamentals and prospects for economic expansion, among other factors. Nations with large financial imbalances, whether internal or external, have been hit hardest, including countries in the Latin American region.