HSBC drops ‘overweight’ call on EM equities on AI spending fears

HSBC has reassessed its position on emerging markets equities, shifting to an ‘overweight’ stance due to rising volatility in Asian markets and ongoing concerns about AI-related expenditures. South Korean stocks have notably suffered, dipping into bear market conditions. Investors are growing wary of the sustainability of AI investments backed by debt. Meanwhile, HSBC has raised the rating on eurozone equities to ‘overweight,’ highlighting favorable market factors.