Goldman Sachs Lifts Asia-Pacific Equity Target on Tech Earnings Outlook

Goldman Sachs has lifted its year-end target for the MSCI Asia Pacific Index to 1,120 from 1,080, implying a 26% upside from current trading levels.

The upward revision is driven by improved earnings expectations, with the strongest upgrades concentrated in Korea and Taiwan.

The bank remains constructive on Asian equities after the third-quarter pullback, pointing to robust earnings momentum in the technology sector, compelling valuations in selected markets, and healthier investor positioning following the recent market recalibration.

Goldman cautions that short-term turbulence could persist, driven by climbing bond yields, geopolitical frictions in the Middle East, and the approaching U.S. congressional elections.

Looking ahead, the brokerage anticipates a more supportive backdrop once those headwinds subside. To navigate the interim, it advocates derivative approaches that offer both downside safeguards and the potential to benefit from further gains.

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