Morgan Stanley Adopts Cautious Stance on Asian Equities Amid Geopolitical Concerns

By EC Assets · Published 26 August 2026

Morgan Stanley is adopting a more cautious stance on Asian equities. The firm is trimming its India exposure. These adjustments are due to concerns that an Iran war may disrupt supply chains if oil flows through the Strait of Hormuz fail. Morgan Stanley previously highlighted top actionable ideas for Asian markets. The firm’s Rajeev Sibal stated that central banks of Asian economies at the forefront of AI-led investment and growth are more likely to raise interest rates. Conversely, central banks in Asian economies not leading in this area are less likely to increase rates. Federal Reserve interest rate cuts would assist Asian central banks. Morgan Stanley's Chetan Ahya indicated that the Federal Reserve's path of cutting interest rates would definitely help Asian central banks. This article is intended for informational purposes only. It does not constitute investment advice.