ANALYSIS-Emerging market investors dive for stocks amid Fed storm

Fed tightening has not been bad news for all EM assets though. EM stocks measured by MSCI's 25-country MSCIEF are flat for the year, which means they have done 5% better than their developed market peers, which is something of a pattern according to Morgan Stanley's analysts.

NEW YORK/LONDON: Developing world investors, buffeted by various "taper tantrums" over the last decade, are now nervously watching as the rainmaker of global markets - the U.S. Federal Reserve - readies its most aggressive rate hike cycle in 17 years.

More hot jobs data on Friday drove the benchmark for world borrowing costs, the 10-year U.S. Treasury yield, to its highest level in two years, prompting yet more gnashing of teeth among emerging market money managers already having a tough year.