It’s a sharp reversal in fortunes for the sector, which had languished as an AI frenzy catapulted tech shares over the past couple years. It underscores a rotation away from growth stocks as US-China trade tensions threaten a global economic slowdown. The cohort is also getting a boost from signs that Asian governments are ready to roll out fiscal stimulus to support spending.
The global trade war is providing a boon for Asian consumer stocks, as investors take shelter in companies that cater to local buyers’ essential needs.
Strategists at Goldman Sachs Group Inc and Morgan Stanley recommended Asian consumer staples in reports released after the April 2 tariff barrage, urging investors to turn defensive. Fidelity International said it snapped up battered Chinese consumer stocks, betting the companies will benefit from government stimulus.
The MSCI Asia Pacific Consumer Staples Index has risen 5% since April 2, the best performance among 11 sectors and beating the broader benchmark’s 2.5% drop. Supermarket chains Yonghui Superstores Co. in China and Kobe Bussan Co. in Japan have risen at least 19% each, while some other beverage and dairy makers have also done well.
