The selloff in emerging markets was triggered by a combination of factors, from the U.S. Federal Reserve's pullback in its bond buying program – which has provided global markets with ample liquidity in recent years – to concerns over the growth outlook for China.
The "Fragile Five" – India, Indonesia, Brazil, Turkey and South Africa – markets have been among the worst hit given their vulnerabilities including twin fiscal and current-account deficits, falling growth rates and above-target inflation.
Over the past month, central banks in countries such as Turkey, India and South Africa have been forced to raise interest rates to stave off currency collapses and an exodus of foreign funds, although the moves haven't been entirely successful.
(Read more: Will emerging markets become a euro zone-style risk?)
Nakao notes several factors that can prevent the turbulence from turning into a full-blown crisis similar to the late 1990s, when emerging markets faced a domino effect across their economies as foreign-currency debt became too expensive after their currencies collapsed, stifling growth for years.
"They have pursued good macroeconomic policies, they have now a stronger banking sector and a better supervision of the banking sector," Nakao said.
In addition, the international community, including the ADB, the World Bank and the IMF, offer "stronger networks of safety net" if problems develop, he said.
(Read more: IMF calls for 'urgent action' amid EM crisis)
To be sure, he noted countries such as India and Indonesia face concerns that they cannot make economic adjustments in the lead up to elections.
"I think makes more difficult," he said. "But I hope economies including India and Indonesia can overcome those difficulties and pass through the policies."