Up in the air: Emerging-market rebound uncertain as Covid-19 runs riot

Emerging-market stocks and currencies are within touching distance of erasing their pandemic-fueled losses of 2020. Too bad the virus is still running riot, economies are shrinking and central banks are getting low on firepower.
 

In fact, the backdrop is so grim that investors may soon start to take the view that prices are starting to defy gravity. After falling more than 30 per cent by March, developing-nation stocks as measured by MSCI Inc.’s benchmark index are just 3 per cent below the level at which they started the year. A gauge of currencies is also 3 per cent short of