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Yellen Pick Gives Emerging Markets Time to Dodge QE Hit

Janet Yellen’s nomination to lead the U.S. Federal Reserve offers emerging markets from South Korea to Brazil a reprieve from any immediate reduction of stimulus that roils markets and capital flows.

South Korea said it expects Yellen will “consider well” the effects on other nations of reducing U.S. bond-buying. A deputy Indonesia central-bank chief said the pick would be positive for local and global financial markets, and a top economic official in India said it means extra time to narrow current-account gaps in developing nations whose currencies suffered over the summer.