Jefferies shifts weightage from China and Indonesia to India and Taiwan

New Delhi [India]December 28 (ANI): Global investment bank Jefferies has increased its allocation to India and Taiwan in its Asia Pacific excluding Japan relative return portfolio while reducing its exposure to China and Indonesia, citing improving macroeconomic conditions and relative growth prospects in the region.

Jefferies said in its latest strategy note that India and Taiwan increased their weights by one percentage point each, financed by reduced allocations to China and Indonesia.

“In the Asia Pacific excluding Japan relative return portfolio, the weightings in India and Taiwan will be increased by one percentage point each, while the weightings in China and Indonesia will be reduced,” the report said.

According to Jefferies’ Asia Pacific ex-Japan asset allocation, India’s recommended weight was increased to 17 percent, while Taiwan’s allocation was also increased; This underscores confidence in medium-term earnings outlooks and structural growth drivers. In contrast, China’s weight was reduced, while Indonesia saw a marginal decrease.

The reallocation comes as Jefferies considers rising uncertainty about China’s economic recovery and policy trajectory, as well as selective opportunities emerging in other Asian markets. India continues to benefit from resilient domestic demand, infrastructure-led growth and improving corporate balance sheets, making it a preferred market in the region, the report said.

Meanwhile, Taiwan remains a key beneficiary of global demand for advanced semiconductors, with the technology sector continuing to play a central role in global supply chains. Jefferies highlighted Taiwan’s strong position in high-end chip manufacturing and continued capital spending by leading technology firms as supporting factors.

Beyond its Asia Pacific ex-Japan portfolio, Jefferies also announced changes to its global and international long-term equity portfolios. The firm said it had removed Bank Central Asia from both global and international portfolios and replaced it with Samsung Electronics, reflecting a move into large-cap technology.

These portfolio adjustments are part of a periodic review process that takes into account macroeconomic developments, central bank policy expectations and stock-specific factors, Jefferies said. The firm reiterated that portfolio weightings may continue to evolve in response to global economic trends and market conditions. (MOMENT)