Asian
markets
may
have
had
a
rocky
2023,
but
those
looking
for
pockets
of
opportunities
in
the
region
can
look
to
Morgan
Stanley’s
selection
of
“alpha”
stocks.
Alpha
stocks
are
those
with
the
ability
to
beat
the
market.
The
stocks,
which
are
from
Asia-Pacific
ex-Japan,
have
a
market
capitalization
of
over
$5
billion
and
were
ranked
on
factors
such
as
quality,
value
and
sentiment,
the
investment
bank’s
analysts
wrote
in
a
Jan.
5
note.
Investors
are
also
more
optimistic
about
the
Asian
market
this
year.
The
MSCI
Asia
Pacific
ex
Japan
Index
is
down
0.15%
in
the
past
month
to
$511.04.
Among
the
“notable
top-ranked
stock
ideas”
on
its
list
is
South
Korean
manufacturing
and
services
conglomerate
SK
Telecom
.
The
bank
has
an
overweight
rating
on
the
stock.
“Our
Korea
telecom
analyst
…
believes
2024
will
be
more
stable
as
regulatory
risks
wane
and
the
5G
cycle
comes
to
a
close,”
Morgan
Stanley’s
analysts
wrote
in
explanation
of
why
they
like
the
stock.
“He
also
sees
the
AI
[artificial
intelligence]
story
as
a
call
option
and
remain
constructive
on
data
centers/cloud,”
they
added.
Another
top
stock
that
Morgan
Stanley
is
overweight
on
is
the
Singapore-headquartered
United
Overseas
Bank
.
The
analysts’
noted
that
the
bank
“has
a
similar
return
profile
to
peers
but
is
lower
risk
given
its
greater
ASEAN
focus,
so
it’s
more
protected
from
slowdowns
in
China’s
GDP
growth.”
Here
are
10
stocks
from
Morgan
Stanley’s
full
list
of
top
overweight-rated
stocks
for
January.
Notable
bottom-ranked
stocks
Morgan
Stanley
also
named
its
“notable
bottom-ranked
stock
ideas.”
Australian
telecommunication
company
TPG
Telecom
was
among
the
stocks
on
the
list,
given
its
“higher
debt
position
than
peers,
weak
mobile
position
and
more
exposure
to
negative
tech
trends.”
These
factors
“should
result
in
a
wider
discount
to
peers
like
Telstra
,”
the
investment
bank’s
analysts
wrote.
Korean
battery
manufacturer
EcoPro
BM
also
appeared
on
the
list,
given
that
its
“valuation
premium
of
60-70%
over
its
peer
L
&
F
is
difficult
to
justify
at
this
stage,
Morgan
Stanley
noted,
adding
that
it
“prefers
companies
with
higher
earnings
visibility.”
—
CNBC’s
Michael
Bloom
contributed
to
this
report.
