Which other countries are India in the race for the top crown in the stock market?

 

South and Southeast Asian shares were one of the few bright spots this year for global funds 

Three equity markets in Asia are competing to be the biggest gainers in the world this year, even as a stronger dollar has hurt the region's appeal. 

Measures from Indonesia, India and Singapore are closing in on Brazil's Ibovespa index, which climbed 5.2% in local currency terms, according to data from major stock benchmarks compiled by Bloomberg. Asian gauges are up at least 3.5%, meaning a day's gains could make a difference. The ranking is mostly similar in dollar terms, although the benefits differ. 

South and Southeast Asian shares were one of the few bright spots for global wealth this year, as reopenings from the pandemic and a revival in tourism boosted corporate profits. Inflation also remained relatively benign in some parts of the region and improving current account balances helped offset the impact of a stronger dollar. 

Indian stocks attracted nearly $6 billion from international investors in the quarter, according to data compiled by Bloomberg. And while Indonesia posted outflows this month, net inflows were still more than $4.4 billion in 2022 so far. 

Still, South and Southeast Asia may become less attractive in 2023 as investors turn their attention to cheaper North Asian markets. 

"North Asia is expected to outperform in an improving valuation, currency and interest rate environment," said Frank Benzimra, head of Asia equity strategy at Societe Generale SA. Or the third quarter next year, he added.