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Markets

Investors turn to ASEAN markets as inflation's grip loosens

Weakening dollar provides tailwind to region's high-growth economies

With Malaysian equities leading the way, the rally in Southeast Asian stocks has been underpinned by expectations of a September rate cut by the U.S. Federal Reserve.   © Reuters

SINGAPORE -- As expectations of a U.S. interest rate cut grow, investors have started to turn to high-growth Southeast Asia in search of markets positioned to benefit from tamed inflation.

Southeast Asian stock markets have soared to new highs since mid-August, with Indonesia's Jakarta Composite Index touching a record this past Wednesday. Malaysia's Kuala Lumpur Composite Index on Tuesday touched its highest since December 2020.

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