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[$$] Emerging-Market Investors Flood Persian Gulf

Persian Gulf sovereign-bond prices jumped as much as 9% in recent weeks ahead of their probable inclusion in JPMorgan Chase & Co.’s emerging-market indexes, a reflection of the growing power that index providers wield in markets that are increasingly dominated by large passive investment funds. The proposed change would fundamentally transform the emerging-market asset class, increasing its size by about 12% and adding Gulf Cooperation Council, or GCC, nations that are far wealthier than the norm in the developing world. JPMorgan is expected to add Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates to the indexes, which already include Oman, before the end of the summer but could still decide not to proceed with the addition, bond-fund managers said.