Morgan Stanley has downgraded its rating on Australian stocks to hold and maintains hold ratings on the South Korean and New Zealand stock markets. It is expected that the Australian stock market may underperform due to high valuations and trading risks. Morgan Stanley prefers the Nikkei Index in Japan, believing that tariffs and fiscal austerity may drag down the economy. At the same time, Turkish stocks have been upgraded to buy, and Brazilian stocks have been upgraded to equal weight.