{
  "id": 1945067,
  "title": "Indian stocks least preferred for Asia fund managers: BofA survey",
  "url": "https://urgent.news/2026/08/19/indian-stocks-least-preferred-for-asia-fund-managers-bofa-survey",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-19T13:49:27.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/asia-fund-managers-rotate-to-defensives-as-ai-conviction-wavers/article71364979.ece"
  },
  "original_language": "en",
  "account": "A recent survey by BofA Securities reveals that India is the least favored market for Asia-Pacific fund managers, with 32% of fund managers (FMs) holding an underweight position. This is compared to 27% for Indonesia, 23% for the Philippines, and 18% for China. The survey, which polled 203 fund managers managing $581 billion in assets, indicates a shift in investment strategies. Managers are pulling back from aggressive technology investments and focusing on defensive sectors. Key concerns for Indian equities include the lack of clear AI exposure (32%), weak growth (18%), and a lack of reforms (18%). The depreciating rupee is no longer a concern, but high valuations are causing worry, with 9% of FMs flagging it as an issue, up from 4% in July. A significant 59% of investors are hedging AI downside risk by shifting into value, cyclical, and defensive sectors, a trend that doubled from July. Nearly two-thirds of respondents require more evidence of AI monetisation before increasing exposure to AI-related stocks. Taiwan is the most preferred market, with 55% of respondents being overweight, followed by Japan at 50% and South Korea at 23%. Despite a defensive tilt, technology semiconductors and hardware remain the top two sector preferences. The rotation away from cyclicals and technology was most pronounced in Asia ex-Japan, where investors moved into utilities, banks, consumer staples, healthcare, and telecoms. Industrials and tech hardware saw the steepest month-on-month declines. In Japan, investment was heavily concentrated in banks and semiconductors, with banks reaching an all-time high in survey readings. Earnings remain a primary driver for Japanese equity views, although Bank of Japan policy normalization emerged as a concern for 23% of respondents. Globally, 60% of investors anticipate the Bank of Japan to raise rates as early as September 2026, with USD/JPY at 165 seen as a potential trigger for Japanese currency intervention. Investor optimism toward Asia ex-Japan equities reached the 89th percentile historically in August, positioning the region as undervalued. Corporate profit expectations remain well above long-run averages, with concern that consensus earnings estimates were too high falling to the 9th percentile historically. Expected returns for Japanese equities moderated slightly to 4.9% from 5.5% in July. Sentiment around the semiconductor cycle weakened sharply in August, with Taiwan identified as the top market benefiting from the next AI phase (27%), followed by Japan and China at 18% each. Within the AI value chain, Power and Energy were the most favored segment for risk-reward over the next 12 months. China's economic outlook improved in August but still trailed Japan significantly. Inflation expectations in Asia Pacific ex-Japan eased further, with 23% of investors anticipating higher inflation over the next 12 months.",
  "summary": "Lack of a clear AI exposure remains the key concern for Indian equities",
  "key_points": [
    "India least favored by 32% of Asia fund managers, underweight",
    "Managers shift to defensive sectors, cut tech investments",
    "Taiwan most preferred market, 55% overweight"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Seeking Alpha News",
        "title": "ServiceNow, Snowflake among software stocks seeing PO raised at BofA",
        "url": "https://urgent.news/2026/08/19/servicenow-snowflake-among-software-stocks-seeing-po-raised-at-bofa",
        "published": "2026-08-19T17:30:03.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}