Preheating in advance? The rebound of Southeast Asian stock markets at the end of the year brings new hope for a significant rise next year.

The recent rebound in Southeast Asian stock markets is expected to continue, with the Federal Reserve's policy shift serving as another catalyst. The rapid shift of supply chains to Southeast Asia and the recovery of the tourism industry have provided better prospects for corporate profitability. Local governments are also implementing measures to support domestic consumption. The valuations of ASEAN stock markets appear more attractive than they have been in the long term, with forward yields lower than the five-year average. Indonesia and Vietnam are seen as promising. However, unfavorable factors such as a US economic recession and weak external demand still exist. It is expected that most Southeast Asian economies will grow at a faster pace next year than in 2023. JPMorgan Chase has increased its holdings of Thai stocks, partly due to expectations of a recovery in the Thai tourism industry.