Southeast Asian markets lead post-global crisis recovery

Stock markets in most of Southeast Asia have been a sanctuary for global investors. Not just this year, but ever since markets worldwide started to recover in the first quarter of 2009, as investors enjoyed the benefits of monetary easing. A major attraction has been their defensive qualities, which have protected them from cyclical forces and made them less vulnerable to the slump in global consumption.

But, within the wider Asian region, there have been significant differences. Most importantly, China’s struggles to maintain its historical GDP growth rates and concerns about its local government debt levels have made investors wary. The Shanghai Stock Exchange Composite index now trades at...