Morgan Stanley sees growing opportunities outside the U.S. as improving earnings expectations begin to reshape the outlook for overseas markets. While there is an impression that these stock markets lag the U.S. because earnings often frustrate pricing expectations, that is changing, said Morgan Stanley's senior portfolio manager Andrew Slimmon on CNBC's "Squawk Box Asia." See which markets are catching the institution's eye:

Morgan Stanley says Street estimates conservative on AI margin impact: "Consensus expects AI Adopters to deliver 4.6% of EBIT margin expansion in 2025-26, modestly ahead of the S&P 500 and nearly twice the MSCI ACWI. Yet that advantage fades quickly in out year estimates, with expected margin expansion for Adopters converging toward the broader market in 2026-27 and 2027-28. Put differently, while estimates are beginning to reflect near-term margin benefits among companies with the most material AI adoption, analysts are not yet underwriting a sustained or compounding productivity benefit. This is especially notable given the meaningful margin inflection expected this year; consensus appears to recognize the initial benefit, but not its persistence."

Morgan Stanley is the only ETF buying Bitcoin. MSBT bought $32.4M of BTC yesterday, the only Bitcoin ETF with inflows on the day. That makes 3 straight days of buying, worth $193.1M. Morgan Stanley has not had a single outflow day in the past 20.

Morgan Stanley’s Adam Jonas says the convergence of AI and robotics could have a transformational impact on the global economy, potentially multiplying GDP as physical AI spreads across transportation, manufacturing and everyday life

MORGAN STANLEY ACCIDENTALLY LEAKS 100+ DEAL PIPELINE A Morgan Stanley employee mistakenly emailed an internal document detailing more than 100 investment-banking deals being pitched or monitored across Asia and other regions. The list reportedly included potential IPOs, private-equity backers, pension funds and paused projects. Morgan Stanley said it promptly addressed the inadvertent disclosure and is engaging with relevant parties.

*MORGAN STANLEY INVESTMENT-BANKING DEAL LIST ACCIDENTLY LEAKED "You are right, i should not have sent out that confidential deal list to everyone in your rolodex. Would you like to revoke my access privileges?"

MORGAN STANLEY MAPS WINNERS FROM HORMUZ REOPENING Morgan Stanley says European equities are the most sensitive to a potential reopening of the Strait of Hormuz as U.S.-Iran diplomacy progresses. Airlines, aerospace, construction, luxury and banks could benefit most from a resolution. The bank remains overweight banks, semiconductors and capital goods, while France’s CAC 40 shows the strongest positive correlation to reopening among European markets.