Global investment bank Jefferies has significantly reallocated its Asia Pacific ex-Japan portfolio, increasing investment in India and Taiwan by one percentage point each. This strategic move, detailed in the bank's latest strategy note released on December 28, 2025, comes at the expense of reduced exposure to China and Indonesia. The shift reflects Jefferies' growing confidence in the structural growth drivers and earnings outlook for India and Taiwan, while concerns over China's economic recovery trajectory influenced the reductions.^[1][2][3][4] ### Strategic Portfolio Adjustment Jefferies boosted India's recommended weighting in its Asia Pacific ex-Japan relative-return portfolio to a significant 17 percent. Taiwan also received a bolstered allocation. This adjustment directly resulted from trimming allocations to China and Indonesia. The firm stated that these changes were based on a reassessment of growth prospects and macroeconomic risks across the region.^[1][2][3][4] The decision to increase India's allocation stems from several key factors. Jefferies cited strong confidence in India's medium-term earnings outlook and inherent structural growth drivers. India continues to benefit from resilient domestic demand, growth spurred by infrastructure development, and strengthening corporate balance sheets. These elements make India a preferred market within the Asia Pacific region.^[1][2][3][4] Taiwan's appeal remains strong due to its indispensable role in global supply chains, especially in the advanced semiconductor industry. Jefferies highlighted Taiwan's leading position in high-end chip manufacturing. Continuous capital expenditure by major technology firms further supports its increased allocation.^[1][2][3][4] ### China and Indonesia See Reductions Conversely, the global investment bank pared down its weighting for China. Heightened uncertainty surrounding China's economic recovery trajectory and policy direction played a crucial role in this decision. Indonesia also saw a marginal reduction in its allocation. This cautious stance on China underscores ongoing concerns about its economic stability, which could have broader regional implications for investors.^[1][2][3][4] The reallocation signifies a notable shift in Jefferies' regional investment strategy. It suggests a positive outlook on India and Taiwan's economies and equity markets, potentially leading to greater capital inflows into these markets. Such inflows could boost stock prices and investor confidence in these two economies.^[1][2][3] ### Broader Portfolio Changes Beyond the Asia Pacific ex-Japan portfolio, Jefferies also announced changes across its global and international long-only equity portfolios. The firm removed Bank Central Asia from both the global and international portfolios. It replaced Bank Central Asia with Samsung Electronics. This move signals a broader tilt towards large-cap technology exposure in the firm's overall investment strategy.^[2][3][4] These portfolio adjustments are part of Jefferies' periodic review process. This process considers macroeconomic developments, central bank policy expectations, and stock-specific considerations. The bank noted that portfolio weightings may continue to evolve based on global economic trends and market conditions.^[3] The strategic shift by Jefferies reaffirms India's position as an attractive investment destination. It also highlights Taiwan's enduring strength in critical global industries.

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