Southeast Asia's investment appeal declines as stock losses grow

Southeast Asia is facing a tough time for investors as stock markets in the region continue to decline. Indonesia is experiencing one of the biggest losses this year, while Malaysia is also among the worst performers. The situation is worsened by local economic problems and the effects of U.S. trade policies under President Donald Trump. Trading in the region has been negatively impacted by fears about political changes in Indonesia and economic pessimism in Thailand. These concerns are driving foreign investors to pull their money out, leading to significant withdrawals from markets. Indonesia alone has seen nearly $1.8 billion removed this year. The MSCI Asean Index is currently in a correction phase, and five Southeast Asian markets are on track for continued foreign fund withdrawals. Despite the previous appeal of Southeast Asia as an alternative to China, this trend is reversing as Chinese stocks have shown strong growth. While there have been calls to consider buying stocks in the region due to lower valuations, risks remain high. Economically troubled Thailand and the Philippines, dealing with political issues, have added to this uncertainty. Analysts suggest that the specific problems facing each country's market need to be addressed for confidence to return.