As global equities struggle after the U.S. Federal Reserve’s latest hawkish rhetoric, Southeast Asia’s growth outlook is making the region an investor favorite.
Man Group, BNP Paribas and Credit Suisse Group are among those touting the region’s resilience after commentary at Jackson Hole reignited a worldwide selloff over the past week. The benchmark MSCI Asean Index has fared much better than the broader MSCI Asia Pacific Index and is set to outperform a gauge of global stocks for a third straight quarter.
The growing bullish chorus points to a reopening of Southeast Asia that’s bringing back a swarm of tourists, as well as booming domestic demand that’s helping shield it from a global slump. And with the tailwind from commodity exports, the region’s earnings outlook seems more promising versus most markets squeezed by slowing consumption and rising costs.