First out, I'll say that I'm not sure which. That sounds insensitive, and I apologize, but I haven't had a reason to use the keyboard too much when running the emulator, and so haven't stopped to look too much at it.
Without changing anything with the emulator itself, and making no code changes (to my apps), the emulator now has its keyboard(/language settings?) stuck in either Chinese or Japanese. Menus and other text is in plain, normal, English.
I reset the user data on the AVDs I was running, and when that failed to work, I deleted all existing AVDs and created new ones, to no avail.