Advertisement
Macroscope | Asean markets: green energy and fintech can provide the impetus for a strong rebound in 2022
- As Southeast Asian economies begin their post-pandemic recovery, stock markets are set to offer solid earnings growth
- New trends are emerging as a result of Asean’s transition from the traditional to the new economy, with opportunities in a wide range of sectors
Reading Time:3 minutes
Why you can trust SCMP
0
Asean stock markets have suffered this year as a result of slow vaccine roll-outs and sluggish economic recovery, underperforming their global peers. From the start of the year to December 29, the MSCI Asean index declined by 3.3 per cent, in contrast with the 17 per cent return from the MSCI ACWI, the index tracking stock markets around the world.
With a long-anticipated move towards non-US markets as the global economic recovery widens, can we finally look to the Association of Southeast Asian Nations for better investment opportunities in 2022?
With vaccination rates picking up in recent months, if local governments start easing pandemic control measures in the new year, there is a high probability of a strong rebound in Asean equities on the basis of attractive valuations and prospects for solid earnings growth.
The ongoing reflation and economic reopening could help boost earnings expectations, especially in sectors focused on domestic demand.
Moreover, given the large scale of Asean’s local market, as well as its unique natural resources, there are plenty of investment themes with strong long-term growth potential.
Specifically, new trends are emerging as a result of the transition from the traditional to the new economy. Asean is where old meets new, with opportunities spanning a wide range of sectors.
Advertisement