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As U.S.-China trade tensions and global tariff risks escalate, Asia’s consumer staples sector is increasingly being seen as a defensive haven.
Fidelity and Goldman Sachs are shifting their strategies away from tech stocks toward staples, signaling a broader investor rotation toward stability.

Since the April 2 tariff announcements, the MSCI Asia Pacific Consumer Staples Index has outperformed, gaining 5% even as broader regional benchmarks fell by 2.5%.
Chinese retailer Yonghui Superstores and Japan’s Kobe Bussan each rallied by over 19%, while food and beverage companies also showed notable strength.

Fidelity has highlighted policy tailwinds in China, while Goldman Sachs raised its weighting on the sector, citing relative insulation from trade disruptions.
In contrast, the consumer discretionary sector dropped more than 5% over the same timeframe, underscoring the growing investor preference for essentials.

Governments across Asia are reinforcing this trend.
China announced 48 initiatives to spur household spending, South Korea unveiled a ₩12 trillion (approx. $8.7 billion) supplementary budget, and a favorable monsoon outlook in India is expected to boost rural consumption.

Strategists frame this shift as a transition from export dependence toward domestic resilience.
Saxo Markets’ Charu Chanana describes it as "pricing in local demand in a more protectionist world," while Hiroyuki Akizawa of Tokio Marine Asset Management emphasizes consumer staples' lower U.S. export exposure as an added shield against tariffs.

JP Morgan and Morgan Stanley have also recommended increasing exposure to Southeast Asian consumer sectors.

Risks remain: Aberdeen Investment’s James Thom warns that a sharp inflation surge could erode profit margins and dampen enthusiasm for the sector.
Still, for now, consumer staples are widely seen as a relative safe haven, with MSCI forecasts expecting double the earnings growth for staples compared to the broader Asia market over the next 12 months.

Nick Twidale at AT Global Markets notes, "Consumer staples are the current focus, but as sentiment recovers, investors may rotate back into discretionary and services sectors" — though he cautions that such a shift would depend heavily on changes in U.S. tariff policy.

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