Jan 15 (Reuters) - Emerging markets-focused fund manager Ashmore said on Monday its assets under management climbed 4% in the second quarter, supported by a positive response from clients to signs of an improving global economy.

The U.S. Federal Reserve signalling the end of its interest rate hiking cycle and continued economic stability in many emerging countries underpinned Ashmore's performance over the three months, supporting emerging market asset prices going into 2024, the company said.

Net outflows for the three months ended Dec. 31 came in at $1.6 billion, lower than the previous quarter. Assets under management rose to $54 billion from $51.7 billion at the end of September, it said.

"Emerging Markets delivered good returns and outperformed most developed world indexes in 2023 due to superior economic growth, effective monetary policies and the benefits of a weaker U.S. dollar as the Fed reaches the end of its tightening cycle," Chief Executive Officer Mark Coombs said in a statement.

"These factors, along with attractive absolute and relative valuations, will support Emerging Markets asset prices in 2024, leading to outperformance and higher allocations from investors who currently have significantly underweight allocations to Emerging Markets."

In the prior quarter

assets under management

had dropped due to weaker economic data in China and worries that interest rates would remain high for a prolonged period.

(Reporting by Eva Mathews in Bengaluru and Huw Jones in London; Editing by Sherry Jacob-Phillips and Louise Heavens)