For some emerging markets funds, current suppressed price of Asian assets is still not low enough, Bloomberg writes.

Managers of portfolios are not in a hurry to spend money on increasing exposure to fast-growing regions. Instead they are expecting further weakening amid trade war between the US and China and strengthening dollar.

Emerging markets currencies and their bonds continued sliding this quarter among financial turmoil in Turkey and Argentina. At the same time Bloomberg Dollar Spot Index grew to the highest level in more than one year last month due to confidence in interest rates hikes by the US Fed.

Indian rupee and Indonesian rupiah demonstrate the biggest losses.

Talks between the US and China stalled, however, exchange of tariffs and threats are going on. This can cause further weakening of yuan.

While threat of full-scale trade war is here, managers of emerging markets funds will behave carefully, experts in Nikko Asset assume.