Summary of Key Points from the Conference Call Industry and Company Focus - **Industry**: Asia Emerging Markets (EM) Equity Strategy - **Company**: Morgan Stanley Asia Core Insights and Arguments 1. **2026 Risk Outlook**: Investors are generally optimistic about the 2026 risk outlook, with a strong consensus on the US-relative valuation appeal within Asia's growth and AI sectors [1][2][3] 2. **Market Positioning**: A recommendation for tight market-risk positions versus benchmarks, with a slight preference for Japan over Emerging Markets (EM) in 2026 [2][3] 3. **Investment Themes**: Key themes driving investment spending include AI & Tech Diffusion, Multipolar World, Future of Energy, and Longevity, indicating a multi-year recovery in capital expenditure (capex) [3][4] 4. **China's AI Sector**: Investors are debating the scale of global AI capex, particularly in China, where monetization is still in early phases, and there are concerns about power bottlenecks [4][5] 5. **Stock Selection**: Emphasis on stock selection through various focus lists (GEM, APxJ, China, Japan, and thematic focus) to generate alpha amid macro uncertainty [2][3] Additional Important Insights 1. **Asian Value-Up Initiatives**: Discussions on reforms in Japan and Korea, including Japan's Corporate Governance code revision and Korea's Commercial Code changes, are expected to impact the 2026 AGM season [11][12] 2. **Catalysts for 2026**: Upcoming diplomatic and electoral events, including APEC and G20 summits, are seen as opportunities for active investing [13][21] 3. **Sector Recommendations**: An overweight position is advised on Japan, India, Brazil, UAE, and Singapore, while maintaining a cautious stance on Saudi Arabia, Indonesia, and Taiwan [10][13] 4. **Capex to Sales Comparison**: Asian AI players are expected to have lower capital intensity compared to US counterparts, which may influence investment strategies [16][18] Conclusion The conference call highlighted a constructive outlook for 2026, emphasizing strategic positioning in key markets and sectors, particularly in Asia. Investors are encouraged to focus on stock selection and remain aware of upcoming reforms and geopolitical events that could impact market dynamics.

November 10, 2025 05:30 AM GMT Quantitative Equity Research Thematic Tides: Quantifying the Next Big Waves Global Thematics, quantified: rules-based, implementable portfolios across AI & Tech Diffusion, Future of Energy, Longevity, Multipolar World. We connect performance, factors, revisions, estimates, valuation, ownership. Standouts: Defense, AI Adopters, Powering AI, Aging Population. M Key Takeaways What this report does. We extend the Morgan Stanley Research division's Key Themes with a rules-based qua ...