Citi downgrades India, sees upside in Chinese stocks

CITIGROUP STRATEGISTS HAVE upgraded their allocation views for Chinese and South Korean equities to "overweight," citing expectations of improving earnings even as tariff risks remain.

- CHIRANJIVI CHAKRABORTY

In contrast, Indian stocks were cut to "neutral" largely due to "relatively high valuations," according to a note by Citi's strategists including David Groman.

The Wall Street bank's upgrades reflect growing optimism that the North Asian markets, fueled by cutting-edge technology and increased government support, will consolidate their recent recoveries.