Goldman Sachs has raised its target for the MSCI Asia Pacific Index to 1,120 from 1,080, implying a 26% price gain from current levels. The bank points to stronger earnings forecasts in Korea and Taiwan and resilient technology sector growth. It still flags near-term risks from bond yields, Middle East tensions and the US midterm elections.
Goldman Sachs has raised its target for the MSCI Asia Pacific Index to 1,120 from 1,080, a change that implies a 26% price gain from current levels. The revision rests on higher earnings forecasts, with Korea and Taiwan leading the upward adjustments.
The bank maintains a positive outlook on Asian equities following the third-quarter correction. It cites strong technology sector earnings growth, attractive valuations in certain markets, and improved positioning after recent market adjustments as the drivers behind the more bullish stance.
Still, Goldman noted that near-term volatility may continue due to rising bond yields, Middle East tensions, and the upcoming US midterm elections. The firm expects a more favorable environment once these events pass and recommends derivative strategies for both downside protection and upside participation.
Source: Investing.com
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