Stock markets in many countries hit new highs and investors turn their attention to ASEAN

Recently, the global stock market has presented a prosperous scene. Stock markets in many countries have hit new highs one after another, and their growth potential has been seen by many investors.

The stock markets of countries such as Germany, Japan and India are particularly outstanding. With its global corporate layout, long-term loose liquidity and steadily increasing dividend levels, the German stock market continues to strengthen. During Japan's economic transformation process, enterprises have accelerated their overseas expansion, and the proportion of overseas income has been continuously increasing. Although the domestic economic growth has slowed down, corporate earnings are affected by the global economy, and the stock market has also hit new highs repeatedly. India's economic fundamentals continue to improve. It has the demographic dividend of a young population, rich labor resources, and its outsourcing model, especially IT outsourcing, is developing rapidly, enjoying the dividends of the global technology industry's development. The stock market shows a strong growth trend.

However, against the backdrop of a weakening US dollar, investors' attention begins to "turn to ASEAN." Since mid-August, Southeast Asian stock markets have soared to new highs. The Jakarta Composite Index in Indonesia hit a record high, and the Kuala Lumpur Composite Index in Malaysia also reached its highest level in recent years. This rally is strongly supported by expectations of a rate cut by the Federal Reserve in September. Previously, although Southeast Asian countries tried hard to deal with the negative impacts of global inflation and a strengthening US dollar, as inflation stabilized and the currencies in this region appreciated, the trend of capital outflows began to change.

Data shows that the MSCI ASEAN index, which tracks the major stock indexes of ASEAN countries, has risen by 6% so far in August. Economic growth in ASEAN countries has also accelerated. For example, Malaysia's real gross domestic product from April to June increased by 5.9% year-on-year, exceeding market expectations. The economic growth of Vietnam and Thailand is also accelerating. The International Monetary Fund predicts that the US economic growth rate will slow down in 2025, while the growth rates of ASEAN countries such as Malaysia, Indonesia, and the Philippines will remain at a relatively high level. In addition, various ASEAN countries are also developing related industries in a targeted manner, attracting many multinational enterprises to increase investment.

In general, the record highs of stock markets in many countries show the vitality and potential of the economy, and the rise of ASEAN stock markets provides new opportunities and choices for investors. The future development trend is highly concerned.