Macquarie sees ASEAN benefiting from AI momentum unwind

ASEAN markets benefited from an AI-driven momentum unwind in July 2026, with performance driven by regional rotation rather than a clear preference for growth or value stocks, according to Macquarie’s latest regional analysis.

Momentum weakness in the region mirrored a broader Asian selloff, though risk appetite later recovered. Earnings revisions weakened in Indonesia and Malaysia but improved in the Philippines. Thailand maintained the strongest market position, while Singapore continued to strengthen.

Consumer sectors led revision momentum across the region, while energy lagged behind.

In Singapore, multiple expansion drove returns, with low-risk stocks outperforming as investors showed caution during the regional growth-to-value rotation and global momentum unwind. Performance was supported by both technical and fundamental factors.

Malaysia saw unclear factor leadership and weaker earnings revisions, but returns were supported by rotation into ASEAN’s defensive laggards.

Thailand’s performance was driven by fundamental factors and analyst sentiment, supported by the strongest earnings revision momentum in ASEAN. Positive returns came from earnings upgrades, offsetting mild multiple compression as investors rotated toward more defensive markets.

In Indonesia, risk appetite returned and drove multiple expansion through technical positioning, though earnings revisions remained weak.

Philippine investors favored liquid companies with stable, visible earnings, while analyst-driven winners lagged despite a broader recovery in earnings revisions.