SOUTHEAST ASIA RECEIVES BROAD SUPPORT

From a valuation perspective, the Thai market remains compelling.

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Southeast Asian equities ended December with a cautious “risk-on” tone, helped by a softer US dollar and year-end rebalancing, though thin Christmas liquidity exaggerated intra-day swings.

Against broadly supportive global cues, the region’s scoreboard still showed wide dispersion, with Vietnam extending its leadership, while the more defensive, dividend-heavy markets in Singapore and Malaysia held a firmer bid than the laggards in Thailand and the Philippines.

Vietnam's VN Index rose late in the month on renewed foreign buying and a political continuity narrative ahead of the Communist Party congress, after a senior party meeting signalled an orderly leadership slate. By late December, the benchmark was up 37.6% year-to-date, one of Asia’s standout performances.

Singapore's STI also capped a strong year — up more than 21% year-to-date as of mid-December — with banks and yield support underpinning the rally. Indonesia's Jakarta Composite briefly pushed into record territory earlier in the month and was up 20.6% for the year, reinforcing its “Asean growth beta” reputation despite periodic volatility.

By contrast, Thailand and the Philippines remained the regional underperformers. Thailand’s SET index was down 9.7% year-to-date, with investors focused on macro and currency dynamics, while Manila’s PSEi fell 7.2% for the year, reflecting a more mixed growth and earnings backdrop.

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