JPMorgan’s 2026 ASEAN outlook: a turning point for earnings and valuations
Investors eyeing Southeast Asia have reason to be optimistic about 2026, according to JPMorgan’s regional outlook. After several years of subdued earnings and stretched valuations, the bank’s analysis suggests ASEAN equities could enter an inflexion point next year, with a rebound in corporate earnings and a re-rating of select names. The emphasis is on selective, fundamentals-driven stock choices rather than broad market bets.
Key regional drivers cited by JPMorgan include improving demand cycles, stabilizing macro conditions in several ASEAN economies, and constructive earnings trajectories for domestic-led beneficiaries. While the region remains exposed to global cycles, the bank argues that a rotation into quality names with resilient earnings streams could lead to meaningful upside in 2026.
Top picks for 2026: DBS, Keppel, CDL, CICT, Sea, STE, Singtel
JPMorgan singles out a group of Singapore-listed and regional names as its preferred exposure for 2026. The list highlights a blend of banks, real estate, infrastructure, technology, and consumer-facing equities that could benefit from the recovery in earnings and valuations. The prominent picks include:
- DBS Group Holdings: As a leading financial services franchise in Singapore, DBS is positioned to benefit from an improving rate environment and stronger loan growth in the domestic market.
- Keppel Corporation: An asset-light conglomerate with exposure to offshore & marine services and property development, offering potential upside from restructuring and asset monetization.
- CapitaLand Investment (CICT): A real estate investment company with diversified income streams and from a portfolio reshaping that could unlock value.
- City Developments Limited (CDL): A property developer/owner that can benefit from a stabilizing property cycle and potential value recovery in core markets.
- Sea Limited (Sea): A high-growth tech and e-commerce player with regional penetration momentum, where monetization and profitability trajectories could improve as the market matures.
- Singtel: The telecommunications giant, with resilient cash flow and potential for multiple expansion as earnings recover and dividend yields remain attractive.
- Southeast Asia-focused STE: Exposure to infrastructure and energy-related assets offering earnings visibility amid ongoing urbanization and growth projects.
These picks reflect JPMorgan’s preference for quality earnings, balance-sheet discipline, and the ability to weather cyclical shifts. The bank also emphasizes that stock selection is crucial; broad market exposure could dilute returns if the earningsupturn is uneven across sectors.
How to think about risk and timing in 2026
While the outlook is constructive, JPMorgan warns that risks remain. Global rate volatility, geopolitical tensions, and domestic policy changes could weigh on some names. Investors are urged to focus on stocks with robust earnings resilience, reasonable valuations, and clear catalysts for re-rating. Sector diversification within the ASEAN space helps mitigate idiosyncratic risks while preserving upside potential.
What this means for Singapore and regional investors
Singapore-listed equities remain a focal point for 2026, given the city-state’s role as a regional financial hub and a proxy for ASEAN exposure. The top picks from JPMorgan span finance, property, and technology, reflecting a balanced approach to capturing earnings recoveries and valuation re-ratings across sectors. For investors, the message is to selectively rotate into high-quality names with visible earnings trajectories and to monitor policy and macro developments that could influence the pace of payoffs in 2026.
Takeaway for portfolios
In a landscape of potential earnings revival, JPMorgan’s 2026 ASEAN strategy advocates selective exposure to a curated set of Singapore and regional leaders. By anchoring allocations to DBS, Keppel, CDL, CICT, Sea, STE, and Singtel, investors may position themselves to benefit from an inflection in earnings and a re-rating of quality franchises.
