Morgan Stanley's report pointed out that in the current highly complex environment, a defensive strategy is safer than an offensive one. The bank is increasingly concerned about the impact of oil prices and global growth risks on cyclical markets and industries.

The bank believes that the main areas of concern during the period from October to November this year are geopolitical risks, the US elections, and policy uncertainties for 2025. The current environment is characterized by multiple risks and opportunities. While China's loose policy is important, valuations have been significantly reassessed. The bank has raised its June 2025 target price for the MSCI China Index from 56 to 71, and the target for the MSCI Emerging Markets Index has been raised to 1,160 from the previous 1,070.