There's been no let-up in the 'taper tantrum' that has demolished stocks across the emerging markets in recent months, a trend that could continue as investors turn cold on an asset class that was a market favorite until about six months ago.
Emerging market stock indexes have registered severe, in some cases double-digit, losses since the U.S. Federal Reserve first began talking about scaling back its extraordinary monetary stimulus in late May.
Indonesia's benchmark Jakarta Composite Index - the biggest loser among emerging markets - has plunged over 20 percent in the past three months, putting it in bear market territory.
Neighboring Southeast Asian markets including Thailand and the Philippines are not far behind, with losses amounting to 17 and 11 percent, respectively, over the same period. India's Bombay Sensex, meantime, has declined more than 10 percent.
(Read more: Activity in BRICs shrinks for first time in 4 years)
Experts say the selling represents an important transition in markets: a shift back to fundamentals.
"The big change in market perception is that six months ago or a year ago, investors were praising the economic management in EM [emerging markets], comparing it favorably with G10. Now they are looking at these countries and saying wait a second, we are seeing weaknesses that we had overlooked," said Steve Englander, global head of FX strategy at Citi told CNBC on Tuesday.