Foreign investors added a net $18.8 billion to emerging-market portfolios in July, reversing two months of outflows as equity selling slowed sharply and bond demand stayed firm. Institute of International Finance data showed bonds attracted $26.7 billion while equities still lost $7.8 billion, a much smaller withdrawal than June's $46.1 billion. Asia led the rebound, swinging to a $9.3 billion inflow from a $27 billion outflow in June, although China remained an outlier with foreign selling in both shares and bonds. Through July, emerging-market debt has drawn $214.4 billion while equities have lost $86 billion, reflecting persistent pressure on tech-heavy markets such as South Korea and Taiwan. The IIF said strong yields and subdued currency volatility have also helped push sovereign issuance to a record pace, but warned that tighter U.S. monetary policy, further yen intervention and geopolitical shocks could disrupt carry trades supporting demand.