Morgan Stanley: US election nears, may bring volatility to Asia stocks, recommends defensive positioning

With about two weeks to go before the US election, Morgan Stanley expects "election year" to bring the most generous returns to Asia or emerging market stocks, except for the pandemic-hit 2020, but the relative high market valuations may bring downside risks as the election approaches, recommending defensive positioning and reducing equity exposure, "overweight" India, ASEAN and South Africa.