This paper empirically examines the impact of COVID-19 on asset markets in 38 economies and capital flows in 14 EMEs, as well as the effectiveness of fiscal and monetary policy responses. Using daily data over the period 4 January 2010 to 31 August 2020, panel and structural VAR results show that emerging markets in Asia and Europe have been more heavily affected than other economies. While fiscal stimulus packages and interest rate reductions helped to restore investor confidence by reducing bond yields globally, quantitative easing mainly helped to boost stock prices, notably for advanced economies and emerging economies in Asia.