Goldman boosts Asia ex-Japan index target for one big reason
Goldman raises its forecast for MSCI AC Asia Pacific ex-Japan Index on expectations for higher earnings forecasts led by Taiwan and Korea.
TL;DR
- Goldman Sachs raises MSCI AC Asia Pacific ex-Japan Index forecast to 1,120 from 1,080, indicating a 26% upside.
- Second-quarter earnings for MXAPJ grew 102%, with Singapore, Taiwan, and Indonesia leading growth.
- Goldman favors North Asia and AI-related tech hardware exposure, along with energy security, defense, and shareholder returns.
- Favored sectors include tech hardware, semiconductors, capital goods, healthcare, and non-Australian/Chinese banks.
- Overweight markets include Japan, Korea, China 'A' share markets, and Taiwan.
- Goldman sets a 12-month target for South Korea's Kospi at 12,000, representing a 79% upside.
- The bank remains constructive on Asian equities due to strong tech-driven earnings, attractive valuations, and cleaner positioning.