UBS Says ASEAN Stocks Lag Asia Ex-Japan, Sees Upside in Malaysia and Vietnam
UBS said ASEAN equities have lagged the broader Asia ex-Japan market because of macro headwinds, policy uncertainty, and limited direct exposure to the AI theme.
UBS said ASEAN equities have lagged the broader Asia ex-Japan market because of macro headwinds, policy uncertainty, and limited direct exposure to the AI theme.
The firm said 55% of stocks are trading below historical valuation levels, and it identified capital-market reform as a potential re-rating catalyst. UBS is positive rating Malaysia and Vietnam, neutral on Singapore and Thailand, and cautious rating Indonesia and the Philippines.
UBS also said concern about ASEAN's limited AI exposure has kept valuations low, while inflows tied to reform progress and portfolio diversification may not be fully priced in.
The firm said 55% of stocks are trading below historical valuation levels, and it identified capital-market reform as a potential re-rating catalyst. UBS is positive rating Malaysia and Vietnam, neutral on Singapore and Thailand, and cautious rating Indonesia and the Philippines.
UBS also said concern about ASEAN's limited AI exposure has kept valuations low, while inflows tied to reform progress and portfolio diversification may not be fully priced in.