Asian consumer stocks are thriving due to global trade war, seen as safer investment choice

From Yahoo Finance: 2025-04-19 20:00:00

The global trade war boosts Asian consumer stocks as investors seek refuge in companies catering to local needs. The MSCI Asia Pacific Consumer Staples Index rose 5% since April 2, outperforming all sectors. The sector’s resilience stems from domestic demand and signs of fiscal stimulus support across Asia.

Fidelity International capitalized on the market plunge to increase holdings in Chinese consumer staples, expecting benefits from Beijing’s support measures. The sector remains a safer bet amid economic uncertainties, with potential for earnings growth twice that of the broader index. Consumer discretionary goods face challenges due to expected cutbacks in non-essential spending.

Goldman and JPMorgan strategists have raised their recommendations for Asian consumer staples, favoring domestic and defensive positions. Asian consumer stocks have outperformed US and European peers, thanks to swift policy support responses. An inflation surge poses a risk to staples, but for now, the consensus is that they are a more secure investment choice.

Read more: Fidelity, Goldman Find Tariff Haven in Asian Consumer Stocks