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Streaks have snapped: The calm in emerging markets suddenly broke

After months of inflows in emerging-market stocks and debt, the streaks have snapped

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Steven Russolillo, Saumya Vaishampayan | WSJ
Investors yanked money out of emerging-market funds for the first time in months, a sign of trouble in what has been a sturdy corner of the market for much of the year.

Emerging-market debt funds and stock funds both had outflows for the week ended Aug. 16, according to fund-data tracker EPFR Global, as many global investors turned more cautious on risk. Before that, money had poured into emerging-market stocks for 21 straight weeks and into emerging-market debt funds for 28 consecutive weeks.

The outflows came as threats of nuclear warfare ramped up between the U.S. and North Korea. Concerns