Donald Trump's participation in the ASEAN summit in Kuala Lumpur has catalyzed a market rebound in Southeast Asia, reversing a prolonged trend of investor outflows. The summit resulted in new trade agreements with Malaysia, Cambodia, and Thailand, which, coupled with record-low valuations, are drawing renewed interest in regional equities. Southeast Asian stocks are currently trading at 14 times forward earnings, a notable discount compared to the MSCI All Country World Index.
Trump's signing of a trade agreement and a critical minerals pact with Malaysia's Prime Minister Anwar Ibrahim marks a significant milestone in bilateral relations. Additional agreements with Cambodia and Thailand are expected to enhance long-term growth prospects. Analysts believe that these durable US-ASEAN trade frameworks could stabilize exports and attract further capital inflows, as investors shift focus from China to ASEAN markets amid easing political tensions and supply chain diversification.
Trump's ASEAN Summit Visit Spurs Southeast Asia Market Rebound
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