Sell-off could have further to run, investors warn

Strong fundamentals in emerging markets aid appeal during crises

High oil prices could benefit certain countries, such as Brazil

LONDON, March 6 — The rush of cash out of risk assets has rattled emerging markets since war engulfed the Middle East, but some investors are betting that economic fundamentals and fragmented geopolitics will allow a year-long rally to resume. The United States and Israel’s bombardment of Iran pressed emerging market currencies and stocks toward their biggest weekly losses in three years, while bonds also tumbled sharply. JPMorgan reduced its overweight stance on emerging market foreign exchange and local currency bonds to market weight, citing uncertainty. Citi also halved its emerging market foreign exchange exposure.