China's economic woes may appear to be behind the recent bout of risk aversion in emerging markets, but strategists say that a culmination of three distinct factors at play.
"The reported trigger for this sell-off was a weaker-than-expected Purchasing Managers' Index (PMI) out of China (last week). The actual reasons are a bit more complex than that," Patrick Chovanec, managing director at Silvercrest Asset Management Group wrote in a note.
In addition to a resurgence of fears over a hard landing in the world's second largest economy, Argentina's decision to abandon its policy of intervening in the foreign exchange market and ongoing concerns over the Federal Reserve tapering its quantitative easing program have also dampened investor risk appetite.
"It's important to remember that they are problematic for different reasons. The factors affecting Turkey are not the same as those affecting Russia or Argentina. But markets tend to paint with a broad brush," said Chovanec.