Equities and currencies across emerging Asia have dropped precipitously but it's more of a hike hissy than a replay of the taper tantrum rout two years ago, analysts said.
"This is just global investors taking some money back from some of the emerging markets or not investing new money in some of the local currency bond markets," Khiem Do, head of Asia multi-asset at Baring Asset Management, said. "I don't think it's any kind of tantrum."
Asia's markets have shuddered this week, spurred on by a "hike hissy" as the U.S. Federal Reserve appears closer to its first interest rate increase since moving to a zero-rate policy in 2008 after last week's better-than-expected jobs data.
On Tuesday, the Jakarta Composite Index tumbled 2.3 percent for a total 6.1 percent drop so far in June as Indonesia's rupiah hit its lowest against the greenback since 1998, during the Asian Financial Crisis. Malaysia's ringgit touched its lowest against the U.S. dollar since 2006 and against the Singapore dollar, it's at its lowest in at least 20 years. In the Philippines, shares dropped 2.2 percent Tuesday, while the Philippine currency was tapping its weakest against the greenback since early 2014, during the taper tantrum.
That rout was spurred by then Fed chief Ben Bernanke first broaching a plan for the U.S. central bank to begin tapering its asset purchases, which spurred massive fund outflows amid concerns liquidity would take a hit.
The 2013 selloff saw $14.1 billion exit emerging market equity funds, while $14.04 billion said good-bye to the segment's bond funds in 2013, according to data from Barclays.
But Bernanke's statement in 2013 was a surprise to markets, while the Fed has been actively signaling the coming rate hike to markets since last year, Do noted, attributing the recent drop to profit-taking.
Others also don't expect the hike hissy to blow up into a full-blown rout.