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>>Trump’s ASEAN tour fuels investor confidence as Southeast Asian markets recover

Trump’s ASEAN tour fuels investor confidence as Southeast Asian markets recover

crypthub

4 days ago

Trump Visit Shifts Market Sentiment

Donald Trump’s ASEAN summit in Kuala Lumpur has turned a year‑long outflow trend into renewed investor optimism. After $900 million left Southeast Asian markets this month, valuations fell and political tensions eased. Traders now see cheaper stocks and a chance to shift supply chains away from China. “A durable US‑ASEAN trade framework would be positive,” said Lombard Odier’s Homin Lee.

Valuations Attract Value Seekers

The MSCI ASEAN index is up only 10 % YTD, far below the 29 % gain in broader emerging markets, and trades at about 14 × forward earnings versus 19 × for the global index. The discount is attracting value seekers as global multiples hit four‑year highs. Portfolio managers advise rotating out of China into defensive ASEAN and India markets.

Government Initiatives and Trade Deals

Vietnam targets 10 % annual growth, buoyed by high‑end manufacturing moving from China and its new emerging‑market status from FTSE Russell, expected to draw billions. Malaysia pursues AI‑driven data centers and a rare‑earth processing hub for Australia. Trump signed trade and critical‑minerals pacts with Malaysia, Cambodia and Thailand, underscoring renewed US interest.

Risks and Outlook

Risks remain: US tariffs on regional goods stay among the world’s highest and Beijing‑Washington frictions linger. Yet limited tech exposure may cushion ASEAN if global equities wobble. Governments in Thailand, Indonesia and Cambodia are using fiscal spending and bank capital injections to boost growth, while investors cite strong value in banks, healthcare and consumer firms.