An MSCI gauge of Southeast Asian, or Asean, equities fell less than 2% this week and rose to an 18-month high relative to the Asia benchmark, which slumped almost 5%.
Global risk assets may be tumbling after the Federal Reserve’s hawkish pivot, but the modest reaction in Southeast Asian markets points to a pocket of resilience that offers opportunities to investors.
High exposure to cyclical sectors, key trading partner China in stimulus mode and the potential from easing lockdowns are bolstering views that the region’s stocks and bonds can withstand Fed rate hikes that have historically weighed.
