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.
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.
