Asian Consumer Stocks Emerge As Safe Bets As Trump Tariffs Pressure Global Industries

American advisors and investors are reportedly shifting focus to Asian consumer stocks, which have shown relative resilience amid broader market turmoil triggered by U.S. trade tariffs.

Goldman Sachs and Morgan Stanley have recommended Asian consumer staples in recent research notes to investors, while Fidelity International said it snapped up battered Chinese consumer stocks, according to a Bloomberg News report on Sunday.

The preference stems from expectations that consumer staples or essential goods companies, especially those catering to large Asian markets, are more resilient to market headwinds and will benefit from swift economic stimulus in their home countries.

China has unveiled new initiatives to boost household consumption in areas like dining and healthcare.

Meanwhile, South Korea has increased its supplementary budget to about $8.4 billion, and in India, projections of an above-average monsoon are fueling expectations of stronger rural demand, according to the Bloomberg report.

Since the April 2 tariffs announcement, the MSCI Asia Pacific Consumer Staples Index has gained 5%, outperforming all 11 sector groups and the broader benchmark MSCI AC Asia Pacific Index, which declined 2.5%.

In the United States, the Global X MSCI China Consumer Discretionary ETF (CHIQ), which tracks companies including companies like Alibaba, JD.com, and Meituan, is, however, down 11.1% on concerns of an all-out U.S.-China trade war and high exposure to tech stocks.

The report said supermarket operators like China’s Yonghui Superstores and Japan’s Kobe Bussan have surged over 19%, with several beverage and dairy companies also posting solid gains.

Fidelity International took advantage of the plunge in Chinese and Hong Kong stocks on April 7 to boost holdings in consumer staples and some travel-related discretionary names, according to the report.

For now, a consensus is forming that staples are a safer bet.

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