LONDON, Jan 20 Reuters Investors poured a record 12.7 billion into emergingmarket debt and equity funds in the week to Wednesday, in response to China39;s easing of its COVID19 restrictions on activity, data on Friday from BofA Global Research showed.

The sudden shift in Chinese policy has boosted many different asset classes, from commodities and mining stocks to currencies and equity markets in popular tourist destinations.

Hong Kong39;s share benchmark, the Hang Seng Index closed on Friday at an over sixmonth high ahead of the Lunar New Year Holiday. Chinese onshore blue chips went into the break at a fivemonth peak.

The BofA data also showed weekly flows of 14.4 billion into bond funds, 7.5 billion into equities, 0.6 billion into cash and 0.6 billion from gold.

European equities witnessed their first weekly inflow in almost a year. BofA said there were 0.2 billion of inflows to European stock funds, the first inflows in 49 weeks.

Europe has benefited both from China39;s reopening as well as recent declines in gas prices.

BofA39;s Bull Bear indicator is at 3.5, a 10month high driven by the inflows into emerging markets.

Nonetheless, the note also says that markets are still facing several major uncertainties despite the recent optimism, as central banks near the end of their aggressive interest rate hikes, as well as the possibility of an economic hard landing and political tension in the United States around its debt ceiling.

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