Jefferies Raises India Allocation to 14%, Cuts Korea and Taiwan

Jefferies has raised India’s recommended weight in its Asia-Pacific ex-Japan relative-return portfolio by 2 percentage points to 14%, while cutting South Korea and Taiwan by 1 percentage point each, according to a report by Christopher Wood, the brokerage’s Global Head of Equity Strategy.

India’s overweight against the 12% benchmark weighting is now 2 percentage points. South Korea falls to 18% and Taiwan to 24%, leaving Korea 1 percentage point underweight and Taiwan 2.8 points underweight.

Wood said the global AI capital expenditure cycle may be nearing a peak and that financial markets are more cautious about funding the next phase of AI investment, even though spending plans remain elevated. Korea and Taiwan are closely tied to memory chips, foundries and semiconductor equipment.

The move reverses Jefferies’ stance earlier in 2026, when it raised both markets’ weights as AI hardware stocks rallied.

Jefferies cited consensus estimates of nearly USD 1.04 trillion in 2027 capex by Microsoft, Amazon, Alphabet and Meta & wider credit spreads and credit default swap spreads for many of these companies.

Memory stocks are about 40% below their late-June peak and the China AI Semiconductor Top 10 Index has halved from its mid-year high.

India’s mix of domestic consumption and infrastructure, which is less tied to technology cycles, positions it as a relative diversifier.