Two sets of positive data flows for the region came through in the past week: 1) UNCTAD's World Investment Report 2012 which highlights record-high FDI inflows into Southeast Asia; and 2) the Philippines' upgrade by S&P to BB+ from BB, one notch below investment grade.

FDI inflows to Southeast Asia rival those to China''

An interesting set of numbers has surfaced from the UNCTAD World Investment report 2012. In Asia, China received a record US$124bn of FDI in 2011. Southeast Asia followed close behind with US$117bn, with Singapore and Indonesia receiving record inflows. Structural themes of: 1) rising Chinese wages and a move towards competitive manufacturing sources in ASEAN; and 2) Singapore's makeover into a key corporate headquarters and service hub are well and alive. Beneficiaries include industrial-estate developers, auto distributors/parts producers, and infrastructure and property stocks. Stock picks include SSIA, BEST, ASII, IMAS, Amata, CTRP, CCT and MMC.''