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Shuli Ren

An Emerging Haven, China Permitting

The global economy still looks good, and these assets have underperformed for years.
Illustration: Getty Images

Worried about rising U.S. bond yields? Emerging markets and junk bonds are usually among the first to sell off when global risk aversion strikes. They may provide more protection this time around.

Emerging markets are looking relatively calm amid the current turmoil. As of Friday afternoon, the benchmark MSCI Emerging Markets Index was still hanging on to a slight gain for the year, even after the S&P 500 Index sank 3.8 percent on Thursday to enter a correction. The U.S. gauge is down 3.5 percent in 2018.