An intense heat wave is currently sweeping through South East Asia with the highest ever temperatures being observed in several countries. Mercury levels have crossed the 40°C (104oF) mark in parts of Thailand and Vietnam, while authorities in Malaysia closed schools to protect students from the sweltering heat. The record high temperatures and accompanying dry weather is an effect of the strong « El Niño » this year and the advance of climate change.
As temperatures rise in South East Asia, the region’s stock markets have also similarly been on fire, and have been the stellar outperformers so far this year. The Indonesian, Thai and Malaysian bourses have delivered double-digits gains year-to-date in USD terms, an impressive feat considering the steep plunge in global markets in the first few weeks of the year. Indeed, Asian and Emerging Markets have enjoyed a strong rebound since the bottom in January as they have been unshackled by the easing of two major macro concerns.
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