For all the concern that there’s a crisis brewing in some developing economies, emerging markets are showing resilience going into the final week of May, thanks to the dollar’s recent pause and a drop in U.S. yields.
That may all change should Friday’s payrolls data fan speculation that the Federal Reserve will accelerate the pace of interest-rate increases. But Turkey apart, investors are saluting a week in which emerging-market currencies had their biggest gain since March and local-currency bonds strengthened for the first time in seven weeks as U.S. 10-year yields slipped back below 3 percent. Still, stocks extended the previous week’s losses.
