Just a couple of months ago, emerging-market assets were all the rage as inflation eased and interest rate-cut bets surfaced. The trade has all but fizzled out. The rapid change has come about as oil rallied some 30% from the year’s low to alter the dynamics for developing nations. Costlier crude is reviving price pressures and damping hopes that interest rates will fall, while threatening to undermine the fiscal balances of energy importers. It’s a shift that may upend the wagers of emerging-market bulls who had started the year on a high note. From Indian bonds to the Hungarian forint and the Philippine peso, ... (full story)