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Global investment bank Jefferies has increased its allocation to India and Taiwan in its Asia Pacific ex-Japan relative-return portfolio, while trimming exposure to China and Indonesia, citing evolving macroeconomic conditions and relative growth prospects across the region.
In its latest strategy note, Jefferies said it has raised the weightings of India and Taiwan by one percentage point each, funded through a reduction in allocations to China and Indonesia. It says, "The weightings in India and Taiwan in the Asia Pacific ex-Japan relative-return portfolio will be increased by one percentage point each by reducing the weightings in China and Indonesia." According to Jefferies' Asia Pacific ex-Japan asset allocation, India's recommended weighting has been increased to 17 per cent, while Taiwan's allocation has also been raised, underscoring confidence in their medium-term earnings outlook and structural growth drivers. In contrast, China's weightage has been pared, while Indonesia has seen a marginal reduction. The reallocation comes as Jefferies assesses heightened uncertainty around China's economic recovery and policy trajectory, alongside selective opportunities emerging in other Asian markets. It says, India continues to benefit from resilient domestic demand, infrastructure-led growth, and improving corporate balance sheets, making it a preferred market within the region. Taiwan, meanwhile, remains a key beneficiary of global demand for advanced semiconductors, with its technology sector continuing to play a central role in global supply chains. Jefferies highlighted Taiwan's strong positioning in high-end chip manufacturing and sustained capital expenditure by leading technology firms as supportive factors. Beyond the Asia Pacific ex-Japan portfolio, Jefferies also announced changes across its global and international long-only equity portfolios. The firm said it has removed Bank Central Asia from both the global and international portfolios and replaced it with Samsung Electronics, reflecting a shift toward large-cap technology exposure. Jefferies noted that these portfolio adjustments are part of its periodic review process, which takes into account macroeconomic developments, central bank policy expectations and stock-specific factors. The firm reiterated that portfolio weightings may continue to evolve in response to global economic trends and market conditions. (ANI)
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