ASEAN Stocks Set to Break Out in 2026, JPMorgan Says
In its 2026 regional outlook, JPMorgan front-runs a potential turning point for ASEAN equities after years of underperformance. The bank argues that a mix of improving earnings, stabilized valuations, and favorable macro trends could lift a broad set of Southeast Asian stocks. Within this framework, a core group of names stands out as the bank’s top picks for the year ahead, including DBS, Keppel, CDL, CICT, Sea, STE, and Singtel. These selections reflect JPMorgan’s view that quality franchises and value catalysts will drive outperformance as the market shifts from fear-driven trading to fundamentals-led gains.
Financials and REITs: DBS Leads Regulatory and Earnings Resilience
DBS Group Holdings remains a centerpiece of JPMorgan’s Asia-Pacific strategy. The bank sees DBS as a high-quality franchise with strong deposit bases, prudent asset-liability management, and scalable digital capabilities. In a rising-rate environment, lenders with robust capital adequacy and cost efficiencies are positioned to generate steady earnings upgrades. Investors should monitor DBS’s exposure to Singapore’s domestic market, cross-border lending momentum, and any channels expanding its wealth management and investment banking revenue mix.
Industrials and Infra Plays: Keppel and CDL as Catalysts
Keppel and CDL are singled out for their diversified exposure to infrastructure, property, and maritime markets that could benefit from a cyclical recovery. Keppel’s offshore and marine business, coupled with its potential progress in energy and urban solutions, provides a lever to ride a rebound in global capex. CDL, Singapore’s leading property developer, is seen as a proxy for Asian urbanization themes, asset-light development strategies, and improving profit margins as project pipelines normalise. JPMorgan notes that both names offer a blend of earnings visibility and scalable growth tied to long-term secular trends in Asia’s real assets sector.
Telecoms and Media: Singtel and Sea as Growth and Value Mix
Singtel features prominently due to its diversified telecom footprint, regional obligations, and potential upside from 5G monetization and digital services. The stock offers a combination of yield support and upside from evolving consumer and business segments across its operating markets. Sea, historically a high-beta tech play, represents a more volatile but potentially high-reward exposure to Southeast Asia’s burgeoning digital economy. JPMorgan emphasizes the need for a disciplined approach to Sea, given its revenue growth potential and ongoing profitability trajectory in its digital entertainment and e-commerce ecosystems.
Property of Utilities and Real Assets: CICT and STE
CapitaLand Integrated Commercial Trust (CICT) and S World Trade & Enterprise (STE) appear on JPMorgan’s radar as defensive exposures with improving earnings visibility. CICT’s diversified portfolio and asset management capabilities could offer resilience amid inflationary pressures and moderating cap rates. STE, with its blend of commercial, industrial, and logistics properties, could benefit from a gradual re-rating as occupier demand normalises and tenant retention strengthens. The combination of these two names provides a ballast in portfolios seeking both yield and growth in a recovering cycle.
The Bigger Picture: Why 2026 Looks Different for ASEAN
Analysts attribute the anticipated rebound to several converging factors: stabilising earnings, a more constructive macro backdrop, and a re-rating in regional equities as investors move beyond the post-pandemic distortions. If the earnings recovery proves durable, JPMorgan expects multiple expansion to accompany a firmer risk appetite, lifting a broad swath of ASEAN stocks, not just the handful of megacaps. The bank’s top picks are therefore positioned to benefit from both company-specific catalysts and the broader regional upturn.
What This Means for Investors
For investors, the core takeaway from JPMorgan’s 2026 outlook is balance. Favor high-quality franchises with clear earnings trajectories and defensible margins while maintaining exposure to growth themes in digital, infrastructure, and urbanisation across Southeast Asia. As always, a disciplined risk framework and a focus on valuation discipline will be essential to capitalise on the upside in ASEAN equities through 2026.
Conclusion: A Deliberate Re-Opening of ASEAN’s Earnings Narrative
With DBS, Keppel, CDL, CICT, Sea, STE, and Singtel identified as top picks, JPMorgan’s 2026 outlook paints a picture of a region poised for earnings and valuation re-rating. The path forward will depend on macro momentum, policy stability, and company-specific execution. Investors who align with these themes may find opportunities across Singapore and regional markets as the ASEAN earnings narrative reopens in 2026.
