Emerging-market stocks and currencies extended their rally on Friday, driven by a bullish investor sentiment and a strong performance in the technology sector. The MSCI gauge for developing equities is on track for its best year since 2017. While the dollar index saw its worst week since June, some Latin American currencies, like the Brazilian real, experienced volatility due to political concerns. Analysts suggest continued gains for emerging markets in the next year depend on a weak dollar and favorable interest rate differentials.