Goldman Sachs Raises Asia ex-Japan Index Target Amid Strong Earnings Growth
Goldman Sachs has raised its target for the MSCI AC Asia Pacific ex-Japan index to 1,120 from 1,080 due to strong earnings growth led by Korea and Taiwan. The firm noted that second-quarter earnings in the region grew 102%, with Singapore, Taiwan, and Indonesia outperforming while Australia, Malaysia, and India lagged behind. Goldman highlighted tech hardware and semiconductors as key areas of focus due to AI-related growth, along with energy security, defense, and shareholder returns. The bank favors Japan, Korea, China A shares, and Taiwan but rates Singapore, Hong Kong, Malaysia, India, and offshore Chinese markets at market weight. Goldman also raised its 12-month target for South Korea's Kospi index to 12,000 from a previous estimate of 9,000. Despite concerns over geopolitical tensions and economic volatility, the bank remains optimistic about Asian equities due to strong tech-driven earnings growth and attractive valuations in certain markets.
Topics: Asia equities Earnings growth Goldman Sachs Kospi MSCI AC Asia Pacific ex-Japan Index