At the start of the year, the accepted strategy for investing in emerging markets could be summed up in one word—don’t. But developing-country stocks have surged nearly 13% in the past eight weeks, largely because the demon that was stalking them, the arrival of higher U.S. interest rates, has likely been pushed back. Currencies and bonds have also rallied, giving some countries and businesses a much-needed chance to clean up their books to prepare for higher rates. The reprieve is temporary.
