While the global market grappled with uncertainty, South and Southeastern Asia economies particularly India, Indonesia and Malaysia have emerged as unexpected investment hotspots.
With strong GDP (gross domestic product) growth, favorable inflation rates and thriving stock markets, these nations offer promising opportunities for investors looking to capitalize on the region’s economic momentum.
It could have been challenging for an investor to predict the current course of the market’s direction in 2024 within the South and Southeastern Asia economies.
Even though some major economic institutions hinted that opportunity was on its way, investors may have underestimated the region’s investment prospects, even to this moment.
This report aims to look closer into the South and Southeastern Asia regions, focusing specifically on the economies and stock markets of India, Malaysia and Indonesia, along with the economic environments surrounding them.
India
MS (Morgan Stanley) was among the first financial services firms to claim that investors’ attention would be turning to India in 2024, as further economic growth was foreseen.
MS, in its 2024 Investment Outlook, clearly stated that India would be seeing superior growth in earnings per share as opposed to the broader emerging markets.
This was confirmed recently as India’s Nifty 50 and BSE Sensex 30 indices reached record highs in the latest days of August.
According to official data regarding Nifty 50, the sector with the most weight within the index remains ‘financial services’ with 32.8%, while second comes ‘information technology’ with 13.8%.
From a YTD (year to date) perspective, the index’s net total return has reached 15.4%.
As per their weight, some of the most influential stocks within the index are HDFC Bank Ltd., Reliance Industries Ltd. and ICICI Bank Ltd.
On the other hand, the BSE SENSEX Stock Market Index advanced 9,470 points or 13.1% since the beginning of 2024.
Yet, general optimism for the Indian economy was also boosted after its GDP rate increased by 7.8% in Q1 of 2024, decisively surpassing forecasts of a 6.7% expansion.
Furthermore, Indian inflation declined notably from 5.1% in June to 3.5% in July, marking a drop larger than expected.
Two crucial indicators of the Indian economy the GDP and the CPI (consumer price index) are evidently pointing to improved economic circumstances, bearing in mind that the global economic scene is moving…
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