Lyon: Suggest increasing holdings in China, Australia, Singapore and Malaysia while reducing the allocation to South Korea.

Lyon released a research report stating that before the normalization of oil and gas supply in the Persian Gulf region, a more cautious investment portfolio allocation strategy should be adopted. The weight of China in the allocation has been revised to an overweight of 5% based on the MSCI Asia Pacific (excluding Japan) benchmark, while the allocation to Australia and Singapore has been adjusted from an underweight of 10% and in line with the benchmark, to an overweight of 10% each. The allocation to Malaysia has been adjusted from an underweight of 20% to the benchmark level, while the allocation to South Korea has been further reduced from an overweight of 15% compared to the benchmark to in line with the benchmark. The bank believes that the increase in oil prices is a result of the US attacks on Iran, with New York oil futures reaching $119 per barrel in Asian early trading on the 9th, equivalent to an average gasoline price of about $4.7 per gallon at US gas stations. The actual oil price in some states may exceed the psychological threshold of $5 per gallon. This level of oil prices may be a political self-injury act, severe enough to force US President Trump to back down. The bank also pointed out that Iran's determined attitude may exceed the expectations of US decision-makers, with Iran potentially risking an oil price crisis leading to economic recession and the depletion of intercepted missile risks, forcing Trump to abandon the war.