Global online trading platform Tiger Brokers highlights how key global and regional market trends will shape the investing landscape in 2023 by delving into the performance of major assets in the US, Europe, and ASEAN.
From its latest investment reports and analyses of industry data, the online brokerage forecasts the following market movements:
US: Many institutions are worried that a potential recession in 2023 may increase downward pressure on the stock market due to negative outlooks from earning reports, with an initial bearish view on US stocks before experiencing a bullish reversal. The likelihood of the Federal Reserve raising interest rates in the first half of 2023, coupled with China’s reopening, will bring positive news to the global economy.1
Europe: The ongoing conflict in Ukraine has had a disruptive effect on the Eurozone in 2022. The ban on Russian fossil fuels has led to an energy crisis that has significantly affected production output. Inflation has eroded corporate profits and consumer incomes, leading to tightening monetary policy, which has dampened investment and consumption. This implies the Eurozone might experience a shallow recession amidst an inflationary environment in 2023. 1
APAC-ASEAN: With the EU and US entering a looming recession, key markets in ASEAN may face a similar sharp turn in 2023, but with a silver lining.
Singapore, GDP is expected to grow by 2.6% in 2023, driven by the continued momentum in the services industry. However, growth will be dampened by the manufacturing sector amidst a weakening global demand.
Indonesia, investors have focused more on local Indonesian stocks rather than overseas stocks due to government regulations over the years. Other main focuses are crypto and forex, which are predominantly traded by young audiences. Crypto gained traction after COVID-19 when local influencers started showing off their wealth on social media. In 2023, GDP is projected to grow by 4.9% on average in 2023-24, only slightly slower than in 2022, reflecting softening but still robust private spending.2
Vietnam, GDP has grown at an average annual rate of 6% in the past 10 years. Crypto is one of the main driving forces of trade with a penetration rate of more than 6%. In the recent 5 years, the Ho Chi Minh Stock Index has overtaken global ones including S&P 500 and Dow Jones in terms of returns and increase. This year, after the strong rebound in 2022, Vietnam is expected to moderate as the growth of exports to major markets slows — with GDP increase projected at 6.3 percent.
Thailand, the number of Thai investors who opened accounts on the Stock Exchange of Thailand has increased steadily in the last 10 years, and the proportion of online accounts has also increased year by year. Relatedly, growth in Thailand is projected to accelerate to 3.6 percent in 2023, reflecting the delayed recovery of contact-intensive sectors like tourism and transport.
With these insights, Tiger Brokers said it aims to assist investors in observing and comparing asset returns in different regions to spot possible investment opportunities for 2023.
Based on these findings, Tiger Brokers identified 3 main sectors that investors could focus on in 2023:
- Tech is here to stay, and grow: Despite the recent layoffs and challenges in the sector, the tech industry is expected to remain robust across the West and APAC-ASEAN. With the reopening of China and the easing of regulatory policies on the tech sector by authorities, a boom can be foreseen in industry sub-sectors such as AI, cloud computing, cybersecurity, the metaverse, robotics, and IoT.
- Revenge travel to open new investment doors: Revenge travel will continue to soar this 2023 as more regions are easing up restrictions and opening up their borders to international and domestic travel. This entails foreseen increase in both leisure and business activities that will feed investments in tourism and consumer sectors.
- Play on sports can lead to great investment bets: The scenes of the 2022 Olympics, the jubilation of the FIFA World Cup Finals and the 2022 Singapore Grand Prix are all still lingering beyond sportsmanship. As the official sponsor of the ASEAN Football Federation (AFF) Mitsubishi Electric Cup 2022, Tiger Brokers understands how major sporting events like such have a notable impact on economic activity – from the influx of tourists to consumer spending. More than just bringing wins for fans, sporting experiences can likewise be a feat for investors with the right investment knowledge and tools.
Eng Thiam Choon, CEO of Tiger Brokers said, “Although 2022 has been a good rebound year for many industries, global stock markets still have taken a hit due to various factors including pandemic control, inflation, interest hikes, and political conflicts
