Global investors sharply increase exposure to Brazilian equities, with foreign inflows reaching $2.3 billion in January alone. The figure exceeds total inflows recorded over the previous seven months combined, signaling a rapid shift in investor sentiment toward emerging markets.
The surge in capital drives Brazil’s Ibovespa up 9.7% in dollar terms over a single week, marking the strongest performance among major global equity markets. Gains are fueled by expectations of improving macroeconomic conditions and relative valuation appeal.
Momentum is also reflected in the EWZ, which tracks roughly 85% of Brazil’s equity market and is on pace for its largest monthly inflow since 2014. The trend highlights renewed global appetite for Brazil amid a broader reallocation toward risk assets.