Goldman Sachs holds a positive outlook on Asian stock markets and anticipates further growth. It has raised its 2026 earnings growth forecasts for the MSCI Asia (ex-Japan) (MXAPJ) Index from 24% to 31%, considering favorable trends in the semiconductor industry.
It also expects earnings growth in the South Korean market to reach 120% (previously 75%) and 32% (previously 30%) in the Taiwanese market.
Meanwhile, Goldman Sachs has increased the MXAPJ index target from 855 to 890, reflecting potential returns of 13% and 15% in USD terms and total returns, respectively. Believing returns to be more concentrated in 1H26, the broker has also lifted the 3-month and 6-month index targets to 830 and 860, respectively.
In terms of regional allocation, Goldman Sachs has kept an Overweight rating on South Korea, China (including offshore and A-shares), and India, and has upgraded Japan back to Overweight.
Repost: AASTOCKS