Christopher Wood warns of AI fatigue. Why Jefferies is turning to India and China

Christopher Wood of Jefferies is rotating his Asia Pacific ex-Japan allocation toward India, assigning it a 12 percent recommended weight against a 10.9 percent MSCI benchmark, a positive mismatch of 1.1 percentage points. He cites AI fatigue, stretched hyperscaler capex of about USD 700bn in 2026 rising to over USD 1tn by 2027, and a 22 percent Kospi correction as reasons to favour cheaper non-AI value markets like India and China, with MSCI China now trading at just 10.6 times forward earnings. Jefferies remains underweight Taiwan and has cut Korea to neutral, viewing India as a prime beneficiary of any sustained rotation out of AI momentum names.