Shares have generally performed well in Asia so far this year. But for dollar investors, weak Asian currencies translates to smaller gains. (Photo by Satoko Kawasaki)

Strong dollar hits Asian stock gains in first half of 2024

Japan, India equities top picks for global investors, while Southeast Asia's luster dims

LISA KIM, Nikkei staff writer

July 1, 2024 06:01 JST

TOKYO -- The influence of the U.S. on Asian financial markets has become more pronounced this year as its robust dollar and relatively high interest rates have dragged on everything from regional currencies to Japanese stocks.

For dollar investors, weak Asian currencies have cut into returns on domestic shares. Many market watchers predict the trend will continue until later in the year, when the U.S. Federal Reserve is likely to start cutting interest rates.