LONDON, Oct 8 (Reuters) - Dollar weakness and expectations of a fresh dose of U.S. quantitative easing drove investors to shovel more cash into emerging markets in the past week, with equity flows at a 33-month high of $6 billion.
Boston-based fund tracker EPFR Global said that in the week to Oct. 6, emerging stock and bond funds were the main beneficiaries, with commodities-focused funds a close second.
Money market funds saw modest outflows of $1.9 billion while EPFR-tracked bond funds received a net $3.87 billion. Collective flows to all equity funds totalled $2.65 billion.
EMERGING EQUITIES
Emerging stock funds tracked by EPFR had their best week since late-2007 and their second best week on record, EPFR said in its report. The Global Emerging Market (GEM) sector absorbed a total $3.74 billion -- the highest on record.
Commodity producing regions such as South Africa and Russia attracted the strongest interest and African funds saw their second-best week on record.
Brazilian equity fund flows hit 156-week highs, the best of any BRIC country, as stockbuyers were unfazed by an Oct 4 decision to double capital inflows levy on debt investments.
GLOBAL EQUITIES
Global Equity Funds posted outflows for the seventh time in eight weeks, with European equities the only developed market to see inflows. The majority of this however went to German, Swiss and UK-focused funds.
Investors redeemed $3.18 billion from US Equity Funds - a five-week high. Japanese equities recorded outflows for the 14th time in 15 weeks as investors fretted about the yen's appreciation to a fresh 15-year high versus the US dollar.
BONDS
Investors escaping the weak dollar pumped over $1 billion into emerging bond funds -- the 19th consecutive week in positive territory, taking year-to-date inflows over $39 billion.
"Emerging Asia bond funds took in fresh money for the 17th week in a row as they remain on course for a record-setting year thanks to the combination of strong growth, sound public finances and appreciating currencies offered by many of the region's key markets," EPFR Global said.
Global bond funds took in $1.94 billion. But flows to U.S. and high-yield bond funds were subdued, the former taking in $523 million and the latter $265 million.
Total return funds fared worst, with outflows hitting the highest weekly level since May.
COMMODITIES AND OTHER SECTORS
Record highs on gold and tin markets in the past week helped commodity sector funds outperform, pulling in a net $706 million and extending their inflow streak to four straight weeks.
Financial and real estate funds also attracted solid inflows -- $429 million absorbed by the former was the best weekly total since July.
But the underlying weakness that is expected to trigger more quantitative easing weighed on funds geared to consumer spending, with consumer Goods and energy Sector Funds posting outflows of $536 million and $286 million respectively, the report added.
(Editing by Patrick Graham)