Jefferies' Asia allocation reset: Agency raises India and Taiwan weightings; trims China and Indonesia exposure

Jefferies has increased its allocation to India and Taiwan in its Asia Pacific ex-Japan relative-return portfolio, while cutting exposure to China and Indonesia, as it reassesses growth prospects and macro risks across the region, ANI reported.

In its latest strategy note, the global investment bank said it has raised the weightings of India and Taiwan by one percentage point each, funded by a corresponding reduction in allocations to China and Indonesia. “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,” Jefferies said, according to ANI.

Following the revision, India’s recommended weighting has been increased to 17 per cent, while Taiwan’s allocation has also been raised. The changes reflect Jefferies’ confidence in the medium-term earnings outlook and structural growth drivers in both markets. In contrast, China’s weightage has been pared, while Indonesia has seen a marginal reduction.

Jefferies cited heightened uncertainty around China’s economic recovery and policy trajectory as a key factor behind the shift. India, it said, continues to benefit from resilient domestic demand, infrastructure-led growth and improving corporate balance sheets, making it a preferred market within the Asia Pacific region.

Taiwan remains a key beneficiary of global demand for advanced semiconductors, with its technology sector playing 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 to its global and international long-only equity portfolios. The firm said it has removed Bank Central Asia from both portfolios and replaced it with Samsung Electronics, signalling a tilt toward large-cap technology exposure.

Jefferies noted that the portfolio adjustments form part of its periodic review process, which factors in macroeconomic developments, central bank policy expectations and stock-specific considerations. The bank added that portfolio weightings may continue to evolve in response to global economic trends and market conditions.