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Southeast Asian Stocks Are Set for Worst Rout Since '16

  • Rout deepens as MSCI Asean Index set for third monthly decline
  • Trade war ‘shelter’ positions unwind as foreigners exit
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UBS' Zuercher Is Still Positive on Emerging Markets

After climbing to records this year, equities in Vietnam, the Philippines and Indonesia are now looking less like the bets that made them global winners.

The MSCI Asean Index has dropped 0.5 percent this month and is poised for the third monthly decline and its longest losing streak since an 8.4 percent, four-month rout that ended in November 2016. Investors who bought Southeast Asian stocks seeking shelter from U.S.-China trade war tensions now face domestic issues that have dragged regional markets amid a surge in U.S. Treasury yields.