By this age your child will begin to form opinions about moral, values and attitudes. Like for example, if you are feeling distressed, your child will understand that feeling of yours and she will also experience the same feeling. Now, she can make out how to read other's feelings through their actions, gestures, and facial expressions. Empathy develops from self awareness, your child becomes more aware of her own emotions, she will also begin to recognize them in others, she knows by now that a certain behavior is wrong if it causes another person pain.
What you need to know
At this stage, your child learns about empathy by noticing what others feel at a certain point of time, allow your child to understand other's emotions and how she can contribute to help someone feel better. Discuss the emotions of a book or tv character with your child and allow her to express what she is feeling and imagining. By this age, she becomes increasingly empathetic and sympathetic and develops a healthy sense of right and wrong. Take this opportunity to explain her about other's emotions and also try and express your feelings openly to her.
If you are feeling low or having a hard day, explain the same to your child and look for her reaction. She will talk to you about what she feels. This builds and promote good behavior, problem solving, confidence in your child.