Morgan Stanley downgrades India to equal weight. The brokerage cited geopolitical uncertainties and oil supply risks as primary concerns, shifting its stance within Asia and Emerging Markets. While India's macroeconomic stability provides some cushion against elevated oil prices, Morgan Stanley remains cautious about AI-related disruptions and expensive valuations. The strategists expect international investors will take time to reposition toward India, potentially waiting for a peak in the tech cycle for Korea and Taiwan. Asia Pacific faces significant headwinds from Middle East developments and potential shipping disruptions that could exceed 2022 levels. Morgan Stanley maintains overweight positions on Japan, Brazil, and Singapore instead.