Goldman raises Asia-Pacific equity target on tech earnings outlook
Goldman Sachs has raised its target price for the MSCI Asia Pacific Index to 1,120, from 1,080, indicating a 26% increase from the current level. This adjustment is driven by revised earnings forecasts, with Korea and Taiwan driving the upward revisions. Despite the recent third-quarter correction, Goldman remains optimistic about Asian equities.
The bank highlights the strong growth in technology sector earnings, attractive valuations in select markets, and improved positioning post recent market fluctuations. However, Goldman warns of potential short-term volatility stemming from rising bond yields, geopolitical tensions in the Middle East, and the upcoming US midterm elections.
The firm anticipates a more favorable market climate following these events and advises on derivative strategies for managing potential downside risks while capitalizing on upside opportunities. This report was assisted by AI technology and vetted by a human editor. For further details, refer to the article's Terms and Conditions.
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