In September, smaller Asian markets like Thailand, Singapore, and New Zealand gained 3% as investors sought diversification and lower valuations.

Smaller Asian equity markets, including Thailand, Singapore, and New Zealand, have gained significant investor interest in September, with benchmarks rising over 3% while MSCI's global index fell by 1%. This shift is driven by investors seeking diversification from larger, volatile markets and attracted to lower valuations, trading under 15 times earnings estimates. Local factors, such as Thailand's political stability and monetary easing in several countries, further enhance their appeal.