Emerging Stocks Most Expensive in More Than Three Years: Chart

Speculation the Federal Reserve will leave borrowing costs lower for longer has spurred demand for riskier assets, driving up the forward price-to-earnings ratio of the MSCI Emerging Markets Index and narrowing its discount versus the MSCI World Index of advanced-nation counterparts. The ratio between the two gauges was the highest since March 2013 as of Monday, according to data compiled by Bloomberg. The emerging-markets index has rallied 15 percent this year versus an advance of 4.6 percent for the MSCI World.