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Cracks in China’s Growth Put Risk-Market Rally on Shaky Ground

  • EM investors are watching factory, retail data for red flags
  • While EM bulls abound, a China stumble would warp the picture
Updated on

Fissures in the Chinese recovery are replacing taper-tantrum jitters as the lurking threat to the emerging-market rally. 

Developing-nation currencies are increasingly vulnerable to signs of weakness in China, and the correlation between a JPMorgan Chase & Co. gauge and the yuan is now the strongest in half a decade. Factory and consumer data due from China this week may add to evidence that the recovery in the world’s second-biggest economy is faltering, stoking fears of contagion in riskier markets.