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Emerging markets tumbled in the second quarter after a stronger dollar and higher U.S. interest rates led many investors to flee from riskier investments in the developing world.

The MSCI Emerging Markets stock index fell 8.5% over the past three months, the index’s worst quarterly performance since the third quarter of 2015. Emerging-markets bonds lost 3.6% in the J.P. Morgan EMBI Global Diversified, a benchmark bond index.

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