(Bloomberg) -- Developing-nation stocks gained, following their best week in a month, as bets rose for a victory by Hillary Clinton in U.S. presidential elections and a go-slow approach by the Federal Reserve for increases in U.S. borrowing costs.

Volatility on the MSCI Emerging Markets Index declined to the lowest since Sept. 9, according to data compiled by Bloomberg. Chinese stocks jumped, while the yuan fell amid signs China may be willing to tolerate a weaker exchange rate to help arrest an export slump. A gauge of developing-nation currencies halted a two-day drop as the dollar retreated and an increase in raw-material prices boosted exchange rates in commodity-producing nations. South Africa's rand and bonds rallied ahead of the presentation of a mid-term state budget.

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