As Delta mutants spread, the assets most sensitive to the panic attracted traders, sending attractive signals of strength and stability.

Earnings from emerging market companies beat forecasts for the first time in 30 months as economies in developing countries rebounded. Meanwhile, the MSCI emerging market currency index, which has fallen this month, has maintained its upward momentum this year. Emerging market stocks fell 2.2 per cent today, wiping out gains so far this year.

Analysts and investors at ING Bank NV and AllianceBernstein are betting that after the stock market falls, risk appetite will recover strongly and see buying opportunities. Given the Fed's upcoming meeting and heightened concerns about inflation in the world's largest economy, it will not be easy to make such a bet. But many emerging market watchers are ready to bet.

"the technical side is very advantageous in the short term," Trieu Pham, an analyst at ING, said in an interview in London. "there is still some time to go before the United States reduces the size. All this is good for risky assets and should be good for emerging markets. "

In the short term, sovereign bonds and carry trades in developing countries will be supported, Pham added.

The recent weakness in emerging market assets, coupled with the pursuit of safe-haven assets, has pushed yields below 1.3 per cent. The MSCI emerging market stock index has fallen more than 6% so far this month, is now close to an oversold area and has fallen below its 200-day moving average.