Tremors from higher U.S. real yields knocked nearly 3 from emerging market stocks on Friday, setting the benchmark index for its biggest weekly fall since March 2020, while South Africas rand gained 1 due to a recovery rally.

Asian bourses fell sharply, with Taiwan, Hong Kong and India shedding more than 3. Heavyweights South Korea and Mainland China stocks were not far behind.

Turkish stocks hit a onemonth low, while South Africas main index slid 2.

MSCIs index of EM shares fell to a fourweek low, on track to see its sharpest oneday drop in more than nine months and taking weekly losses to almost 6.

Yields on U.S. 10year bonds slipped slightly on Friday but hovered near oneyear highs hit in the last session.

U.S. Treasuries have become a focal point for global markets after traders aggressively moved to price in earlier monetary tightening than signalled by the U.S. Federal Reserve and peers, with fears of rising inflation also playing in.

But Barclays interprets the rise in U.S. Treasury and real yields as being benign for EM assets, as it appears to reflect optimism about growth and the effects of a larger U.S. fiscal stimulus.

A rise in crossmarket volatility could weigh on flows into EM fixedincome funds but, on balance, we think that any correction is more likely to be bought into, rather than accelerate into a prolonged and deep selloff of EM assets at this stage, analysts at Barclays said.

BofAs weekly fund flow data showed emerging markets enjoyed record…