Nomura Cuts Chinese Stocks to Fund Indonesia, Malaysia Switch
- The bank cuts MSCI China call to neutral from overweight
- Indonesia will benefit from EM revival as US cuts rates
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Investors should pare their Chinese equity holdings and put their money in Indonesia and Malaysia, according to analysts at Nomura Holdings Inc.
They upgraded Malaysian and Indonesian stocks to overweight from neutral, partly on their view that the two markets will benefit more from cuts to U.S. interest rates, according to a note by strategists including Chetan Seth. The analysts cut their recommendations on MSCI China to neutral from overweight.