Emerging market assets may have sold off to what appear to be attractive valuations, but analysts say the stars are not yet aligned for bargain hunting.
"There is no denying that EM assets are now generally cheap," Societe Generale said in a note, but it added "valuation alone is unlikely to be enough as a key market driver."
Emerging markets have seen a brutal sell-off this year after sharp falls in the value of the Argentine peso, Turkish lira, South African rand and Brazilian real triggered panic selling across the asset class, with analysts largely blaming the turbulence on the Federal Reserve's move to begin tapering its asset purchases.
While the pace of fund outflows has been slowing this month after a tough January, around $21.7 billion has flowed out of emerging market equity funds from the beginning of the year through February 12 after $15.2 billion in outflows in 2013, according to data from Barclays. Emerging market bond funds have lost $8.01 billion over the same period, compared with $14.04 billion in 2013, the data show.
(Read more: Are markets headed for a perfect storm?)
"While the panic is over, it is too early to call for a sustained rally," SocGen said. "We are going to need to see a proper trigger," it added, saying it is looking for stronger economic data after recent softness in economic growth.