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By Bloomberg

Emerging-market stocks pared the largest monthly decline this year as health-care companies gained and investors weighed the timing of a U.S. interest-rate increase.

Sun Pharmaceutical Industries Ltd. rose 1.7 percent in Mumbai before India’s biggest drugmaker report earnings Friday. Philippine shares rose 2.3 percent as UBS Group AG recommended investors buy the nation’s equities after a six-day slump. Evergrande Real Estate Group Ltd. plunged 21 percent in Hong Kong after raising a net HK$4.6 billion ($593 million) below a marketed price range. The Shanghai Composite Index climbed 0.6 percent following Thursday’s 6.5 percent slump.

The MSCI Emerging Markets Index added 0.3 percent to 1,012 at 1:07 p.m. in Hong Kong, trimming losses this month to 3.5 percent. Developing-nation stocks have slumped in May as concern grew that the Federal Reserve is close to raising interest rates, dimming the appeal of riskier assets. Fed Chair Janet Yellen said last week borrowing costs will be increased this year. The U.S. updates first-quarter growth data Friday.

“What has surprised recently is the stronger set of economic data that we have received from the U.S., which means the Fed can increase rates soon,” said Mixo Das, a Singapore- based equity strategist at Nomura Holdings Inc.

The developing-nation gauge has risen 5.8 percent this year and trades at 12.1 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has also gained 5 percent in 2015 and is valued at a multiple of 16.8.

Industry Groups

All 10 industry groups rose as a gauge of health-care companies climbed 1.2 percent. Sun Pharmaceutical climbed for the first time in five days. Indian shares added 0.8 percent. Shanghai Fosun Pharmaceutical (Group) Co. surged 7.7 percent in Hong Kong after signing a cooperation agreement with Guahao.com.

The Philippine Stock Exchange Index jumped the most since October 2013. UBS said in a May 28 note that the country’s first-quarter GDP growth is “not bad as it seems” and that the recent slump in stocks offered buying opportunities.

Evergrande plunged the most on record after being forced to cut the price of a share sale that analysts said will do little to reduce the company’s indebtedness.

The Hang Seng China Enterprises Index declined 0.3 percent, its third day of losses. The Shanghai Composite Index edged higher amid rising volatility. The gauge tumbled on Thursday after brokerages tightened lending restrictions and the central bank drained cash from the financial system.

Malaysia’s ringgit weakened 0.3 percent versus the dollar, while the Thai baht strengthened 0.3 percent.