NEW YORK (TheStreet) -- As U.S. equities form a topping pattern, emerging-market equities and foreign assets are breaking to the upside, with room to run.The bounce-back in commodities, weakening U.S. dollar and flattening yield curve have all contributed to the recent breakout in foreign assets. The first chart below is of iShares China Large-Cap ( FXI). China was a major catalyst for the first selloff in emerging assets that led us to the depressed levels we bottomed out at. Weak Chinese economic data and fear of an unsupportive central bank pushed money out of developing countries and commodities. In recent weeks, as commodities have rebounded and positive sentiment has returned, the battered assets have caught a bid off of their bottoms. Chinese manufacturing data released Tuesday night, however, underperformed expectations, which will be telling of the future price movements of emerging-market assets. If the markets can shrug off the miss and close higher, they are likely to continue within the strong uptrend.