US-Iran war, March 6 -- Global brokerage Morgan Stanley has turned cautious on Asian equities, including India, amid concerns that the conflict in the Middle East could disrupt supply chains if oil flows through the Strait of Hormuz fail to recover.

The brokerage sees India as the most exposed to potential Qatari liquefied natural gas supply disruptions, therefore downgrading it to equal-weight in their latest reshuffle.

"We stay defensive," Morgan Stanley strategists, including Daniel Blake and Jonathan Garner, wrote in a note dated March 5, according to a Bloomberg report. "Asia remains critically dependent on Middle Eastern supply of crude oil, refined products and LNG, and we believe the market is too complacent about supply chain r...