The MSCI Asean Index has surged 14% in an eight-day winning streak, almost double the 7.4% rally in the MSCI Asia Pacific Index over the same period. At its highest since March, the gauge of Southeast Asian shares has narrowed the gap with its peers but still remains down about 14% for the year. The broader Asian gauge is up 8%.
Governments across the region are looking to ease social distancing measures, with Singapore and Hong Kong announcing Wednesday they will start an air travel bubble replacing quarantine with Covid-19 testing from Nov. 22. The"stars are aligning” for a resurgence in Southeast Asian stocks, amid signs that earnings have bottomed out, according to Devendra Joshi, a strategist at HSBC Holdings Plc. The bank is overweight shares from Indonesia, Singapore and Thailand.
Foreign buyers piled a net more than $600 million into Thai stocks on Tuesday, the biggest purchase in 10 years, as the benchmark SET Index jumped the most since April.