Contagion,

positions in some of these markets, particularly in Asia.

For Fabiana Fideli, global head of fundamental equities at Robeco, South Korea and China are the top investment destinations.

“You will have volatility. That unfortunately comes with the package in emerging markets,” Ms. Fideli said.

But she notes it’s an opportunity to buy rather than a reason to panic.

Robeco sold its holdings in Turkey in its fundamental equity strategies well before the crisis, she said, anticipating trouble from the country’s extremely loose monetary settings.

Robert Samson, a Singaporebased senior multi-asset portfolio manager at Nikko Asset Management, sees Asian stocks supported by strong earnings and structurally sound growth and has added the asset class to Nikko’s overweight positions.

“Because of the downdraft and how emerging markets like to sell off all at once, thinking that they all share the same characteristics, which they don’t, it’s often a buying opportunity,” said Mr. Samson.

He said the price-to-earnings ratio of Asia ex-Japan stocks is at about 13, well below average and the lowest since early 2016 when markets were also quite depressed. “This is not to say they cannot get cheaper, but we see reasonable upside when the stress subsides,” he said.

The sell-off in emerging markets gathered momentum after US President Donald Trump in March signed a memorandum targeting up to $60 billion in Chinese goods with tariffs, triggering fears of a global trade war.

Since then, the Chinese stock market has shed nearly 15% in dollar terms and Indonesia has lost 12% though India has risen by five percent.

Data from research service Morningstar showed emerging market equity and bond funds globally posted net outflows in May and June, reversing inflows seen in January through to April.

In his search for opportunities, Kenneth Akintewe, head of Asian Sovereign Debt at Aberdeen Standard Investments in Singapore, studies investor positioning in each market.

Indonesian bonds went from being his team’s largest overweight position to underweight in late 2017 as foreign ownership levels shot to above 40%.

But he is now cautiously returning to the Indonesian bonds, after long-term yields there spiked above 8% following the Turkish rout.

Mr. Akintewe also sees buying opportunities in dollar-denominated bond markets, such as Chinese high yield bonds and real estate, as well as the local-currency bond market in Malaysia.

Chinese bonds are a hot favorite with many fund managers because of falling yields and a low correlation with developed markets, where yields are rising.

Chuck Knudsen, a portfolio specialist at T. Rowe Price in Baltimore, says Turkey gave him the opportunity to invest in assets such as stocks of private banks in Brazil and India, insurance companies in South Africa and China, and equities of internet and financial holdings in Russia. —