Morgan Stanley released its latest actionable stock ideas for Asian markets, highlighting opportunities across banking, shipping and industrial sectors amid an uncertain operating environment in the Asia‑Pacific region.
The firm maintains an underweight rating on National Australia Bank (NAB.AX), arguing that the bank’s share price rally in July, combined with elevated trading multiples and a weak earnings outlook, makes its current valuation difficult to justify.
For COSCO SHIPPING Energy Transportation (1138.HK), Morgan Stanley reiterates an overweight stance, taking a contrarian view that the tanker cycle’s peak will extend beyond the market‑expected 2026 peak to 2027. The outlook is driven by anticipated delays in the reopening of the Strait of Hormuz, which could prolong favourable market conditions for the tanker operator. The company reported second‑quarter revenue of CNY 6.13 billion, a 24 % year‑over‑year increase, and net profit of CNY 1.83 billion, up 46 % YoY.
Regarding Mitsubishi Heavy Industries (7011.T), the investment bank upgraded the stock to overweight after strong first‑quarter results and an upward revision of earnings forecasts and price target. The positive stance reflects confidence in continued profit generation and margin improvement, particularly from the firm’s energy business. Additionally, Mitsubishi Heavy Industries secured a JPY 378 billion defense contract from Japan’s Ministry of Defense to develop and produce next‑generation missile systems, further supporting its earnings outlook.
These recommendations collectively underscore Morgan Stanley’s sector‑specific confidence in shipping and industrial firms while expressing caution on Australian banking exposure.