Global Funds Return to Southeast Asia Stocks as Trade Fears Fade

Southeast Asian stocks are finding their footing, fueled by renewed global inflows and a flurry of US trade pacts that are easing tariff pressures.

Global funds poured $188 million into the region’s stocks in July, snapping a nine-month streak of outflows, according to Bloomberg-compiled data. That helped the MSCI Asean Index gain 2.3% for the month and beat the broader MSCI Asia Pacific Index for the first time since March.

The rally reflects fading investor fears over regional political strife and tariff risks, including President Donald Trump’s claims of Chinese transshipmentand Thailand-Cambodia border tensions. Recent diplomatic breakthroughs on US ...