Jefferies Financial reduces overweight stance on India and Indonesia

Interestingly, Jefferies now has a bigger OW on Pakistan. However, India's absolute weighting is still much higher. China currently is the biggest OW for Jefferies, followed by Taiwan

The overweight stance towards India and Indonesia came down drastically at Jefferies Financial Group over the past year.

Currently, the brokerage recommends 9.5 per cent weighting to India, 198 basis points higher than its weighting in the MSCI Asia Pacific ex-Japan index, where the country’s weighting is 7.8 per cent. In August last year, Jefferies was 680-point overweight (OW) on India, with a weighting of 15 per cent.

Indonesia is another market, which has seen a sharp reduction in asset allocation. Its weighting has declined from 9 per cent last year to 3 per cent at present in Jefferies’ model