Markets have rallied since the U.S. Federal Reserve held fire on interest rates, but that doesn't mean it's time to pile into emerging markets.
"It has been a Cinderella story for emerging market and resource stocks for several weeks," Nomura said in a note Wednesday. "But we think this will prove more of a short-term (multi-week) trade than a genuine EM inflection point with large 'real money' follow-through."
Leading up to the Fed's September 16-17 meeting, concerns that it would raise interest rates for the first time in nine years spurred a massive outflow of funds from emerging markets, including Asia's. But the Fed surprised markets by leaving rates unchanged and many analysts moved their forecasts for the next hike into 2016. That helped spur rallies in emerging market stocks and currencies, some of which had tested their lowest levels since the 1998 Asian Financial Crisis in the weeks previous.