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The New Haven for Global Investors May Be Emerging-Market Stocks

  • EM stocks have outperformed developed peers this month
  • EM assets under-owned explains relative resiliency: Goldman
Japan’s Topix Set for Lowest Close Since August on Europe Woes
Photographer: Kiyoshi Ota/Bloomberg

With Treasuries, the yen and gold failing to live up to their usual haven potential, it seems the traditional risk-on vehicle of choice -- emerging-market stocks -- has stepped in to take up the mantle.

A benchmark of developing-nation shares has leaped higher as equity markets from Europe to the U.S. reel from the resurgent coronavirus and pre-election jitters. The MSCI Emerging Markets Index is up about 3.5% this month, compared with a 1.4% slump in the MSCI All-Country World Index. The former has even broken out of a 2 1/2-year relative downtrend.