Strong dollar, high oil, selective allocations – Marketing feedback from Hong Kong

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Strong dollar, high oil, selective allocations – Marketing feedback from Hong Kong

Global Equity Research

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GEMS First To Market 28 July 2026

Top Stories

ASEAN Equity Strategy and Economics (Khoi Vu, CFA), Indonesia, Malaysia, Philippines, Thailand,

Vietnam

We concluded our marketing trip in Hong Kong last week with a focus on ASEAN equity strategy and economics. As the macro

backdrop for ASEAN continuing to face multiple headwinds from high oil prices, a strong USD, El Niño, and uncertain political

developments, investors are focusing on themes and bottom-up drivers to allocate capital in ASEAN markets. Key topics of

equity strategy discussions:(1) Country/sector allocation with a defensive tilt against macro headwinds (Singapore,

Malaysia, Energy/Utilities, USD earners). (2) Idiosyncratic themes (Thailand recovery, market value-up reforms, broadening

from AI trade). (3) Identifying selective opportunities for flow reversal in ASEAN in 2H26. Economic discussions revolved

around: (i) Thailand’s outlook following our non-consensus view on investment-led growth; (ii) prospects for further tech

growth in Singapore/Malaysia; (iii) currency headwinds and policy implications amidst potential Fed hikes. We reiterate our

cautious view on ASEAN equities going into 2H26: OW Singapore and Malaysia; Neutral Thailand, Vietnam and

Indonesia; and UW Philippines equities.

| ASUSTek Computer (Albert Hung) (2357 TT, N, PT NT$750.00), Taiwan