Emerging-Market Stocks Back to Pre-Taper Tantrum Values: Chart

A fifth month of outperformance for developing-nation shares is narrowing their valuation gap with rich-country peers. The price-earnings ratio of MSCI Emerging Markets Index has risen to 79 percent that of the MSCI World Index for the first time since April 2013, the month before Federal Reserve sparked a flight from riskier assets by signaling it would wind down bond purchases. Investors have poured $22 billion into U.S. exchange-traded funds focusing on emerging markets in the past 19 weeks.

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