Global investors rotated back into emerging market assets in April, reversing March’s war-induced outflows, according to Institute of International Finance data.

Portfolio inflows exceeded $58 billion, offsetting much of the prior $66 billion withdrawal triggered by escalating geopolitical risks. Debt markets led the recovery with nearly $52 billion in inflows, while equities added over $6 billion after heavy selling the month before.

The IIF said the rebound signaled an easing of short-term funding stress but warned that it did not represent a full return to pre-crisis optimism.

The rebound was uneven, with strong inflows concentrated outside China, particularly in debt markets across Latin America and other emerging regions.