Due to factors ranging from politics to property, Asian stock markets put in a largely mixed performance during the first half of 2014. Indian equities were the star performers in the region, with election euphoria propelling the benchmark BSE Sensex up 20 percent in the first six months of the year. Prime Minister Narendra Modi’s historic victory in May’s general elections was the source of optimism among investors who believe the new decisive leader will awaken Asia’s sleeping giant.
“You have political change, the economic environment seems to be improving and there is likely to be resurgence of the investment cycle. There’s a lot of hope there among investors – and this is likely to continue into the second-half as well,” Hans Goetti, head of investment, Asia at Banque Internationale a Luxembourg told CNBC.
Running close behind was Philippine’s stock market which surged over 16 percent, while Indonesian equities took third place, gaining 14 percent ahead of the country’s presidential election on July 9.