According to Morgan Stanley's emerging Asian market stock strategy report, the bank upgraded the region's technology industry rating to “increase” in October 2022, but believes that the overall Asian stock market valuation peaked and that capital rotation between technology and necessities appeared. Before estimating that the Fed cuts interest rates for the first time in September, it is necessary to profit from technology stocks, adjust their ratings to “synchronize with the market”, and remove TSMC, SK Hynix, MediaTek, Tokyo Electronics, and Tokyo Precision from the focus list, retaining Samsung Electronics and Hon Hai Technology to reflect the lower risk of both beta In the AI smartphone cycle It has a great advantage.
The bank raised the consumer necessities rating from “reduced holdings” to “increased holdings” and included many consumer stocks such as Chia Tai Group and Amore Pacific in the focus list to reflect that the sector's valuation is lower than technology stocks and the return on equity is better.
Hong Kong stocks in the Dama Asia Pacific (excluding Japan) focus stocks include Tencent, Zijin Mining, and Bubble Mart.