November 24, 2025 09:00 PM GMT Asia EM Equity Strategy | Asia Pacific Investor Views on 2026 and AP Summit Takeaways Investors were generally constructive on the 2026 risk outlook and formed a strong consensus on the US-relative valuation appeal within Asia's growth and AI cohorts. Key Takeaways 2026 outlook season: In our 2026 Asia EM Outlook, we led with a recommendation for tight market-risk positions versus benchmarks with a slight preference for Japan vs. EM in 2026. Stock selection in the form of our ...

Summary of the Asia Pacific Summit 2025 Conference Call Industry and Company Focus - **Industry**: Global Economics and Investment Strategies - **Company**: Morgan Stanley Key Points and Arguments Economic Outlook - Morgan Stanley's 2026 outlook anticipates moderate global growth and continued disinflation as the base case, with the US being a critical swing factor due to resilient consumption and AI-driven productivity [1][8] - Asia's real GDP growth is projected to accelerate from 4.3% in Q4 2025 to 4.7% in Q4 2026, driven by non-tech exports, improved capital expenditure, labor market conditions, and consumption [1][8] China’s Economic Policy - China's reflation is expected to be gradual, with modestly expansionary and supply-centric policies, including anticipated rate and RRR cuts [1][8] - Spending will focus on tech localization and infrastructure, with slow progress on rebalancing and social welfare support [1][8] Investment Recommendations - Strong performance is expected in risk assets, particularly US and Japanese equities, due to favorable policy and AI-driven fundamentals [1][8] - In Asia, a preference for Japan over emerging markets is recommended for 2026, with Chinese equities likely stabilizing after strong returns in 2025 [1][8] Corporate Themes and Trends - The conference will address four major global themes: Tech Diffusion, Multipolar World, Future of Energy, and Longevity [2] - Ongoing trends in Asia include China's Emerging Frontier, The New India, Singapore at 60, and Korea Renaissance [2] Keynote Speakers - Notable speakers include Chee Hong Tat (Minister for National Development, Singapore), Teo Chee Hean (Chairman, Temasek Holdings), and Sebastian Thrun (Founder of Google X and Waymo) [3] Market Positioning - Morgan Stanley recommends tight market-risk positions versus benchmarks, indicating a cautious approach to market volatility [1][8] - The firm highlights a preference for Japan within its coverage universe, suggesting a strategic focus on Japanese equities [1][12] Earnings Forecasts - The forecast for TOPIX EPS for fiscal years 2025, 2026, and 2027 is ¥185 (+9%), ¥198 (+7%), and ¥225 (+14%) respectively, indicating a positive outlook for Japanese equities [13] Asset Allocation - Morgan Stanley's asset allocation recommendations include a focus on equities, particularly in the US, Europe, Japan, and emerging markets, while maintaining a cautious stance on government bonds and credit [9] Other Important Content - The conference will feature various panel discussions and presentations from Morgan Stanley analysts across different regions, providing insights into global economic trends and investment strategies [3][14][15] - The agenda includes discussions on navigating post-tariff growth divergence, the role of AI in various sectors, and the implications of geopolitical dynamics on investment strategies [14][15][17][18]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the Asia Pacific region, emphasizing competitive reinvention and corporate strategies to adapt to emerging technologies and multipolar supply chains [1][4][8]. Core Themes and Insights - Asia is undergoing significant transformation in growth and corporate strategies, with a focus on capital market reforms to enhance competitiveness [1][4]. - The updated Asia Thematic Focus List includes 25 stocks identified as conviction winners, projecting a three-year EPS CAGR of 16.1% for 2025-27, with a forward P/E of 22.6x and a PEG of 1.4x [7][8]. Sub-Thematic Analysis - **Top Sub-Themes**: - China's AI Path ranks highest, followed by the Diabesity Ecosystem and AI & Healthcare [7][8]. - The thematic fund flow and stock mapping have been deepened, quantifying and ranking growth, valuations, and performance across sub-themes [7][8]. Financial Metrics - The Asia Thematic Focus List is trading at a forward P/E of 22.6x and a PEG of 1.4x, indicating a robust growth outlook [7][8]. - Specific sub-themes show promising growth metrics: - **Critical Minerals**: 19.9% sales growth CAGR and 50.0% EPS growth [28]. - **Semiconductor Localization**: 23.2% sales growth CAGR and 32.2% EPS growth [30]. - **AI & Tech Diffusion**: 11.0% sales growth CAGR and 18.8% EPS growth [30]. Thematic Fund Flows - APAC-domiciled thematic funds' AUM reached $191 billion as of September 2025, with significant growth in "Robotics + Automation" and "Artificial Intelligence + Big Data" funds [20][22]. - Digital Economy thematic funds recorded the highest fund flows in Q3 2025 [25]. Valuation Insights - The report highlights that while some sub-themes exhibit strong revenue and EPS growth prospects, they also face high valuations [28]. - The **Future of Energy** sub-themes show lower growth outlooks but offer more valuation support [31]. Additional Observations - The report emphasizes the importance of understanding the competitive landscape and the need for companies to adapt to the evolving market dynamics in Asia [1][4]. - The analysis includes a ranking of sub-themes based on growth, valuation, and risk-reward profiles, providing a comprehensive view of investment opportunities [33][34]. Conclusion - The Asia Pacific region is positioned for significant growth driven by technological advancements and strategic reforms, with various sub-themes offering attractive investment opportunities despite varying valuation metrics [1][4][8].

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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 ...

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses four key themes impacting markets in 2025: **Tech Diffusion**, **Longevity**, **Multipolar World**, and **Future of Energy** [2][4][8]. Core Themes and Insights Tech Diffusion - **AI Adoption Impact**: Corporate adoption of AI could yield annual net benefits of approximately **$920 billion** for S&P 500 companies, significantly reshaping the future of work [3][10]. - **Sector-Wide Benefits**: AI is expected to drive productivity gains and cost reductions across various sectors, including retail, real estate, transportation, and healthcare [3][23]. - **Data Center Financing Gap**: There is a projected **$1.5 trillion** financing gap for global data centers through 2028, with total capital expenditures expected to reach **$2.9 trillion** [10][35][36]. Longevity - **Healthcare Spending**: US healthcare spending is projected to reach **25% of GDP by 2050**, driven by an aging population and rising costs [8][10]. - **AI in Healthcare**: AI innovations could generate annual savings of **$300–900 billion** by 2050, representing a **10-20%** reduction in costs across various healthcare sectors [8][10]. Multipolar World - **Tariff Projections**: The effective global tariff rate is expected to reach approximately **16%** by year-end, with baseline tariffs around **10%** and higher rates on imports from China [4][10][67]. - **eCommerce Growth**: The global eCommerce market is forecasted to grow to **$6.3 trillion** by 2029, with a **9% CAGR** anticipated [10][58]. Future of Energy - **Power Demand for Data Centers**: Between 2025 and 2028, there is a projected demand for **65 GW** of power for US data centers, highlighting a **45 GW shortfall** in available power capacity [5][10]. - **Innovative Energy Solutions**: Solutions such as repurposing crypto mining sites and expanding rooftop solar in Latin America are emerging to address energy bottlenecks [5][10]. Additional Important Insights - **AI's Role in Content Creation**: Generative AI is expected to reduce content production costs by **10-30%**, benefiting companies like Netflix and YouTube [44][46]. - **Investment Strategies**: The call outlines various thematic stock picks aligned with the discussed themes, emphasizing companies that are AI adopters and enablers [11][12][13]. - **Dynamic Tariff Mitigation Strategies**: Companies are increasingly focusing on pricing power as a primary strategy to mitigate tariff impacts, surpassing supply chain diversification [67][69]. Conclusion The conference call highlights significant trends and projections across multiple sectors, emphasizing the transformative impact of AI, the challenges posed by geopolitical factors, and the evolving energy landscape. Investors are encouraged to consider these themes when evaluating potential opportunities and risks in the market.

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Nuclear Energy - **Theme**: Nuclear Renaissance, intersecting with global megatrends such as Tech Diffusion, Multipolar World, and Future of Energy [1][5][8] Core Insights and Arguments - **Nuclear Capacity Projections**: Global new nuclear capacity is projected to reach **586.8 GW** by **2050**, a **53%** increase from previous estimates [7][10][12] - **Investment Forecast**: Potential investment in the nuclear value chain through **2050** is estimated at **US$2.2 trillion**, up from **US$1.5 trillion** [7][11][12] - **Regional Growth**: China, the US, CEEMEA, and India are expected to lead in nuclear capacity growth, with Asia emerging as a key investment region [7][10] - **Stock Exposure**: The report identifies **63 stocks** that are exposed to the nuclear renaissance, expanding from an earlier list of **51 stocks** [8][17] Key Trends and Opportunities - **Tech Diffusion**: Nuclear power is seen as a premium energy source in the age of AI, emphasizing reliability and energy density. Key stocks include Talen Energy, Public Service Enterprise Group Inc, and Vistra Corp [9][19] - **Multipolar World**: South Korea and Japan are positioned to benefit in the global nuclear market amid competition from China and Russia. Notable companies include Doosan Enerbility and Samsung C&T [9][19] - **Future of Energy**: Small Modular Reactors (SMRs) and Fourth Generation reactors are highlighted as promising technologies, with companies like Curtiss-Wright and GE Vernova mentioned [9][19] Policy and Market Sentiment - **Investor Sentiment**: The proportion of global assets under management (AUM) excluding nuclear power has decreased to **2.3%**, indicating a shift in investor attitudes [14][51] - **Development Banks**: Institutions like the World Bank are reassessing their stance on nuclear energy, lifting bans on financing nuclear projects, which could enhance investment opportunities [51][52] Regional Insights - **China**: Fastest nuclear buildout, on track to reach **200 GW** by **2040**. The country is a pioneer in Gen-IV and nuclear fusion technology [23][38] - **India**: Ambitious target to expand nuclear capacity to **100 GW** by **2047**, with significant growth expected [40][38] - **CEEMEA**: Emerging as a significant market for nuclear energy, with Poland and Turkey leading the pipeline [39][10] Additional Noteworthy Points - **Technological Advancements**: The report discusses advancements in Gen-IV reactors and thorium-based technologies, with China and India making strides in these areas [20][21] - **Market Performance**: Nuclear stocks have outperformed the MSCI ACWI index year-to-date, indicating strong market interest [28][29] This summary encapsulates the key insights and projections regarding the nuclear energy sector, highlighting investment opportunities and regional dynamics that could shape the future of the industry.