JPMorgan says you should be putting your money in these Southeast Asian stocks

An investor watching share prices at the securities trading floor of Asia Commercial Bank in Hanoi, Vietnam.
Hoang Dinh Nam | AFP | Getty Images

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SINGAPORE — Stocks in Southeast Asia have underperformed the broader regional markets this year, but JPMorgan says the worst may be over — and some sectors and companies are looking attractive.

Foreign investors retreated from Southeast Asian stock markets in the last few months as heightened uncertainties caused by the coronavirus pushed them to seek safer investments elsewhere.

"We believe that the worst is probably over for ASEAN but the path and speed of recovery still remain a concern," JPMorgan strategists said in a note last month, referring to the Association of Southeast Asian Nations.

The U.S. bank said investors should be looking more into sector allocation rather than just country allocation. Across sectors in the region, JPMorgan is underweight on financials and industrials.