<div id="readability-page-1"><div>M Stanley said in a report that Asia-Pacific equities continue to benefit from index tilts toward computing, commodities and capital goods. The surge in artificial intelligence (AI) capital expenditure is driving earnings growth for AI enablers, while the bank also sees broader capital spending programs spanning defense and economic security, creating opportunities in industrials and commodities.The report noted that Asia, with its upstream advantages, is well positioned to capture benefits from the global surge in AI capital expenditure, alongside the ongoing build-up in public spending on energy security and defense. By economic risk exposure breakdown, more than 50% of the weighting in Asia/emerging market indices comes from computing (semiconductors/hardware), commodities, capital goods and real assets. Earnings growth in computing remains strong, but valuations and positioning have also risen accordingly.The bank finds cyclical sectors attractive and, unlike peers, maintains an &#34;Overweight&#34; stance on the commodities sector, which also benefits from the capex supercycle and enjoys better valuation support relative to historical levels and other sectors. Meanwhile, the capital goods sector has solid long-term prospects, though M Stanley noted its median valuation is close to that of the computing sector despite lower three-year growth expectations. Strategically, the bank remains &#34;Overweight&#34; on the industrials sector and will continue to work with its key industry teams to screen for high-potential opportunities.M Stanley revised its Asia thematic focus list, adding four stocks and removing four, as follows:Additions | Sector Gulf Development PCL | Utilities Mitsubishi Heavy Industries (7011.JP) | Industrials FANUC (6954.JP) | Industrials Wiwynn (6669.TW) | Information Technology ----------------------------- Removals | Sector Reliance Industries | Energy Fujitsu (6702.JP) | Information Technology Grab Holdings | Industrials Goodman Group | Real EstateM Stanley's latest Asia thematic focus list includes: Taiwan Semiconductor Manufacturing (2330.TW) Samsung Electronics (005930.KS) TENCENT (00700.HK) -2.600 (-0.562%) Short selling $1.65B; Ratio 14.977% CONTEMPORARY AMPEREX (300750.SZ) -7.050 (-1.624%) Delta Electronics (2308.TW)AIA (01299.HK) +0.800 (+0.920%) Short selling $324.24M; Ratio 23.625% Mitsubishi Heavy Industries (7011.JP) NAURA (002371.SZ) -16.600 (-2.857%) Larsen &amp; Toubro Ltd Doosan Heavy Industries (034020.KS)WUXI APPTEC (02359.HK) -7.300 (-5.317%) Short selling $94.76M; Ratio 22.147% Hanwha Aerospace (012450.KS) FANUC (6954.JP) Hyundai Electric (267260.KS) INOVANCE TECH (300124.SZ) -2.040 (-2.668%) Wiwynn (6669.TW) Gulf Development PCL ST Engineering SIEYUAN ELEC (002028.SZ) -4.400 (-2.124%) Furukawa Electric (5801.JP)Taisei (1801.JP) Lynas Rare Earths Sojitz (2768.JP) GS Yuasa (6674.JP) GemLife Communities Group(da/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-14 12:25.) (A Shares quote is delayed for at least 15 mins.)</div></div>

7011

FANUY

6954

ROBO

IBOT

ARKQ

BOTZ

M Stanley's report highlights that Asia-Pacific equities are poised to benefit from a surge in global AI capital expenditure, particularly in computing, commodities, and capital goods. The bank maintains an "Overweight" stance on the commodities sector and finds cyclical sectors attractive. M Stanley revised its Asia thematic focus list, adding four stocks including Mitsubishi Heavy Industries and FANUC, while removing four others. The report emphasizes Asia's strategic position to capitalize on increased public spending in energy security and defense, alongside strong earnings growth in computing sectors.

AASTOCKS News

Mitsubishi Heavy Industries, Ltd.

Fanuc

Fanuc Corporation

ROBO Global Robotics

VanEck Robotics ETF

ARK Autonomous Tech & Robotics ETF

Global X Robotics & Artificial

Morgan Stanley

Fujitsu Limited

Grab

Goodman Group

Taiwan Semiconductor

Samsung Electronics Co., Ltd. Sponsored GDR

Samsung Electronics 

TENCENT

CATL

NAURA

WUXI APPTEC

Inovance

ST Engineering

SIEYUAN

Furukawa Electric Co., Ltd.

TAISEI CORP

Lynas Rare Earths Limited

Sojitz Corp.

GS Yuasa Corporation

MORGAN STANLEY DEP SHS EA REP 1/1000 SHS NON CUM PFD O

MORGAN STANLEY DEP SHS REPSTG 1/1000TH PFD SER Q

MORGAN STANLEY DEP SHS REPS 1/1000 7.125% PFD E

MORGAN STANLEY NON-CUM DEP SH REP 1/1000 PFD SER I

MORGAN STANLEY 4.875 DEP SHS REP 1/1000 NCUM PFD SR L

MORGAN STANLEY 6.5%DEP SHS REPSTG 1/1000 NON CUM SER P

MORGAN STANLEY DEP SHS REPS 1/1000 PFD SER 'A'

MORGAN STANLEY DEP SHS REPR 1/1000TH INT PFD SER 'F' FX

MORGAN STANLEY DEP SHS REP 1/1000 NON-CUM PFD STK SER K

GRAB - CW25

Tencent

TENCENT-R

Tencent HK SDR 10to1

Tencent Holdings Limited

CATL HK SDR 30to1

AIA-R

AIA Group

WuXi AppTec

Lynas Corporation

M Stanley: Asia Ready to Capture Surge in Global AI Capex; Lists Latest Regional Thematic Focus Stocks