Southeast Asian Markets Rebound as Investor Sentiment Shifts
Global investors are cautiously returning to Southeast Asian equities after a prolonged period of outflows, driven by attractive valuations and easing political tensions. The MSCI Southeast Asia Index has climbed 10% year-to-date, though it lags behind the broader emerging markets rally.
Trump's ASEAN visit has sparked Optimism for improved trade relations, with Lombard Odier's Homin Lee noting that a durable US-Asean trade framework could provide sustained tailwinds. Regional stocks now trade at 14 times forward earnings—a significant discount to global benchmarks.
Amova Asset Management's Shay Pang reflects growing caution about stretched global valuations, suggesting Southeast Asia may offer relative value. The shift comes as supply chains continue diversifying away from China, creating new opportunities in the region.
