Trump’s ASEAN visit sparks optimism for trade and investment revival

US President Donald Trump’s visit to Southeast Asia for the ASEAN Summit has revived optimism that the United States will strengthen trade cooperation with ASEAN member states, Bloomberg reported.

The summit reignited investor interest in ASEAN stock markets, which are regaining appeal thanks to low valuations, supply-chain shifts from China, and signs of political stability. These factors are drawing investors back after nearly US$900 million was withdrawn from ASEAN markets earlier this month.

Emerging markets regain attention

Bloomberg noted that investors have turned to technology-heavy markets such as Taiwan, South Korea, and China, where equities have rebounded. The MSCI Index for Southeast Asian stocks has risen by 10% this year, still lagging behind the broader emerging market index, which has gained 29%—the steepest annual gap since 2020.

Despite high US tariffs on ASEAN exports and ongoing US-China tensions, the region remains attractive. The MSCI ASEAN index is trading at around 14 times earnings, below the MSCI All Country World Index’s 19 times, supported by sound policy and economic outlooks in individual member states.

Vietnam targets at least 10% annual economic growth over the next five years, benefiting from “friendshoring” as high-end manufacturing relocates from China. The country’s recent upgrade to “emerging market” status by FTSE Russell is expected to attract billions of dollars in capital inflows.

Malaysia is gaining attention as a data centre hub supporting global AI expansion and for its ambition to become a major rare-earth processor.

Indonesia has seen renewed investor confidence following liquidity injections to stimulate lending, with stock dividends forecast to yield around 5%.

Homin Lee, macro strategist at Lombard Odier in Singapore, said: “Any signal pointing to a more sustainable and supportive US-ASEAN trade framework would benefit the region.”

Trade deals and political significance

Trump’s visit carried economic and geopolitical weight, particularly in finalising trade deals and reaffirming ASEAN’s regional importance.

Malaysia:
Prime Minister Anwar Ibrahim and Trump signed trade and critical mineral agreements on Sunday. The signing followed the US’s 19% tariff on Malaysian imports imposed in August, which Anwar described as “a significant step” to enhance bilateral relations.

Thailand:
The Thai government, meanwhile, signalled fresh domestic stimulus via the Let’s Go Halves Plus co-payment scheme and signed a peace deal with Cambodia to address border disputes—moves that could foster greater regional stability.

However, four key challenges remain:

• High US tariffs on ASEAN exports remain among the steepest globally.
• US-China tensions continue to overshadow regional trade prospects.
• Liquidity constraints and cautious central banks hinder monetary easing amid volatile currencies.
• China’s manufacturing dominance still threatens ASEAN competitiveness.