How have ASEAN markets performed so far this year?

With possibility of 20% plus corrections on the horizon, manager cautious on ASEAN markets over the next 12 to 18 months.

Asia ex-Japan markets, in particular emerging ASEAN countries, are under pressure from the expectation of increasing interest rates and a rising US dollar. The reduction of easy liquidity is expected to (and is already) having an impact on countries like Indonesia where foreign ownership of market free float is estimated at around 70%. Low commodity prices, weakening exports, and an expectation of lower liquidity will drive asset values down in ASEAN markets, as well as impact relative currency strength respectively. On top of this, the recent correction and ongoing concerns about Chi...