Citigroup says Asian equity positioning remains skewed toward shorts, with the
Nikkei carrying the heaviest short exposure. Global equity positioning has
weakened as investors turn defensive, and over the past week regions have seen a
near-continuous reaccumulation of short positions. In Asia the Nikkei and
Korea's KOSPI show particularly high short interest while long participation
remains limited. That creates asymmetric upside risk: even modest positive
catalysts could trigger pronounced short-covering rallies, especially in the
Nikkei and KOSPI.
