JP Morgan has highlighted Malaysia and China as two of the most resilient Asian economies amid the current global energy crisis.
Rajiv Batra, JP Morgan’s head of Asia and co-head of global emerging markets equity strategy, noted that other Asian countries appear more vulnerable. “Malaysia benefits from net energy exports, a well-managed fiscal deficit, and moderate inflation, giving it buffers that support both equity markets and the currency,” he said.
China, he added, is similarly well-positioned, with only 5% of its electricity dependent on imported energy. The majority comes from domestic production, supported by a strategic reserve of about 1.7 billion barrels and alternative energy sources such as renewables and coal. “These factors make Malaysia and China the safest bets in Asia compared with their peers,” Batra said.
Regarding regional equity markets, Batra said Asia’s earnings growth forecast for 2026 has been revised from 31% to around 26% due to direct impacts on consumer staples, discretionary, utilities, and downstream sectors. He also warned of potential second- and third-order effects on sectors like tech, media, telecoms, and healthcare if the energy crisis persists.
Oil prices remain elevated, with US crude settling at US$99.64 per barrel and Brent crude at US$112.57, marking the highest levels since July 2022 amid ongoing geopolitical concerns in the Middle East.
