The MSCI Emerging Market Index of stocks headed for the lowest close in almost four weeks.
Countries are walking the tightrope trying to figure out the exact level of borrowing costs that won't cripple their economies.
Analysts have reduced their average projections for profit at emerging-market companies by almost 16% this year.
The strong dollar is pummeling emerging markets.
Investors have snapped up local bonds from Indonesia and Thailand, where benchmark rates had hovered around the record lows.
Shares of mature companies with high dividends and cheap valuations are finding a bid in the U.S. and Europe.
A new regulatory crackdown in China may pose a larger threat to emerging market assets than the Ukraine war.
Russian dollar bonds were hammered this week on concern the invasion of Ukraine would incur sweeping sanctions.
Some investors see a better earnings outlook and cheaper relative valuations for emerging markets.
Developing nations have also been a picture of resilience.