Isaac Thong, Lead Manager of the Aberdeen Asian Income Fund, discusses the impact of the conflict in the Middle East on Asian markets.

While a prolonged conflict could weigh on Asia, particularly through higher oil prices and fuel supply pressures, the duration remains uncertain. Asian economies are most sensitive to energy costs, though resilience differs by region. From a market perspective, Asia’s overall exposure to conflict related risks is limited, and the trust is predominantly positioned in high quality compounders and consistent businesses. These companies are well placed to continue delivering returns amid the current uncertainty.