ASEAN 2026: JPMorgan’s Top Picks Point to Earnings Rebound
In its eagerly watched regional outlook, JPMorgan Chase analysts flag a pivotal turn for ASEAN equities in 2026. After several years of muted performance and compressed valuations, the region is projected to stage a meaningful recovery in earnings and valuations. The bank’s strategists emphasize a shift in sector leadership and stock selection, highlighting a roster of Singapore-listed names as core beneficiaries of the expected rebound.
Core Picks for 2026: DBS, Keppel, CDL, CICT, Sea, STE, Singtel
Among the most notable names flagged by JPMorgan are several blue-chip Singapore stocks that blend resilient earnings, strong balance sheets, and favorable secular trends. DBS Group Holdings (DBS) stands out as a prime beneficiary of a modestly higher rate environment and continued digital banking momentum. Keppel Corporation appears on the list for its diversified exposure to maritime services, property development, and energy-related ventures—areas the bank sees as stabilizing earnings in a diversified conglomerate model.
City Developments Limited (CDL) and CapitaLand Integrated Commercial Trust (CICT) represent the real estate and property trust space’s potential to rebound as occupancy improves, yields normalize, and balance sheets strengthen. With Singapore’s property market gradually reopening and tourism flows recovering, these two names offer exposure to both residential and commercial demand cycles that underpin resilient cash flows.
Sea Ltd and Singapore Technologies Engineering (STE) are cited for their exposure to high-growth segments and defensive earnings streams. Sea’s e-commerce and digital entertainment platforms are viewed as high-growth engines that can flourish in a regional recovery scenario. STE, with its diversified engineering portfolio and government-linked orders, is seen as a relatively defensive proxy within industrial sectors, benefiting from public-sector capex cycles.
Singtel, a long-standing dividend anchor, is presented as a classic value play in a late-cycle environment. The telco’s robust cash generation, ongoing cost efficiencies, and potential upside from new digital connectivity initiatives contribute to a compelling risk-adjusted profile for 2026.
What Drives the 2026 Outlook?
JPMorgan cites several catalysts that could lift ASEAN earnings and valuations. A synchronized uptick in global demand, gradual normalization of supply chains, and sustained capital investment in infrastructure are expected to lift exports and domestic growth. In Singapore specifically, improving sentiment around tourism, a stabilizing property cycle, and a prudent fiscal backdrop support a constructive equity environment.
From a sector lens, financials, property, industrials, and consumer technology stand out as the primary engines of uplift. Banks could benefit from a steady yield curve and improving loan growth, while property-linked stocks may see demand return as occupancy rates recover. Technology and consumer internet peers in the region could see margin expansion as new revenue streams mature in a recovering economy.
How to Position Portfolios in 2026
Analysts recommend a balanced approach that blends defensive dividend plays with exposure to potential upside in earnings growth. For Singapore-based investors, the JPMorgan list offers a pragmatic framework: overweight in financially sound, cash-generative names like DBS and Singtel, with selective exposure to growth-oriented holdings such as Sea and STE where risk is balanced by robust balance sheets.
Risk management remains central. While valuations may re-rate, currency moves, macro surprises, and policy shifts can alter outcomes. Active stock selection will be key, as the region’s earnings trajectory hinges on both macro conditions and company-specific execution.
Bottom Line
JPMorgan’s 2026 ASEAN outlook signals a turning point after a protracted period of underperformance. By favoring a mix of defensive, cash-generative stocks and select growth plays, the bank believes investors can capture meaningful upside as earnings recover and valuations re-rate. DBS, Keppel, CDL, CICT, Sea, STE, and Singtel emerge as central names to watch in this evolving landscape.
