Goldilocks year awaits emerging markets defying Covid-19 pandemic rout

Underpinning the recovery is a resurgence in foreign-investor interest

Emerging-market investors seem to have everything going for them right now, with the November rally offering a hint of what 2021 may have in store.

A plethora of tailwinds from accommodative central banks to an impending change of U.S. president and Covid-19 vaccine progress has put the assets of developing nations on course for some impressive milestones. Bonds have wiped out their year-to-date losses, while MSCI Inc.’s currency index is poised for the best month since January 2019 as well as a second successive annual gain. The MSCI stocks gauge is on track for its best month since March 2016.

Underpinning the