Morgan Stanley released a new report on the stock strategy for emerging Asian markets on July 23. The bank will raise its rating on the technology industry in the region to 'shareholding' in October 2022. However, it believes that the overall Asian stock market valuation has peaked, and there is a capital rotation between technology and necessities. Before the estimated first interest rate cut by the Fed in September, profits should be made from tech stocks, and their rating should be adjusted to 'synchronize with the market'. Taiwan Semiconductor, SK Hynix, MediaTek, Tokyo Electron Ltd. unsponsored ADR, and Tokyo Precision will be removed from the focus list and Samsung Electronics and Hon Hai Precision Industry will be retained, reflecting their lower beta risk and significant advantage in AI smartphones. The bank will raise its rating on consumer necessities from 'shareholding' to 'increased shareholding' and will include several consumer stocks such as CP All and Amore Pacific on the focus list to reflect the lower valuation of this sector compared to technology stocks and better stock returns. Hong Kong stocks in Morgan Stanley's Asia-Pacific focus list (excluding Japan) include Tencent, Zijin Mining Group, and Pop Mart.