If you live in this region it should be of no surprise, ASEAN has already gone through its debt crisis back in ’97-’98 hence the lower debt-to-gdp ratios versus Japan, Europe and the US. The fund flow into the region and certain sectors (hospitals, telecoms and commerce specifically) has been unexpectedly strong and doesn’t look to be slowing down any time soon. Watch all investment houses starting preaching AEC benefits again post 2Q12 earnings once news over Europe and China slows down.

Southeast Asian governments have bolstered spending on infrastructure and stepped up efforts to spur domestic consumption in a bid to reduce their economies’ reliance on exports. That’s helping to shield the nations from Europe’s debt crisis and a global economic slowdown, which has fueled volatility in the northern Asian markets.

Indonesia, Malaysia, Thailand and the Philippines also topped the risk-adjusted return ranking over the past five years, with Malaysia posting the lowest volatility and the Philippines having the fourth-lowest price swings.

Source: Bloomberg