Goldman Sachs Asia-Pacific Weekly Kickstart: MXAPJ Rose 7%, Driven by a Broad-Based North Asia Rally, Led by Korea (+17%) on Continued AI Semiconductor Re-Rating and Easing Geopolitical Risks
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Key Views
China and Japanese markets also rose, though their gains trailed Korea's. India lagged the broader region with more modest increases. The AI semiconductor theme remained a key performance driver across Asia-Pacific, particularly benefiting the Korean semiconductor sector. Improving geopolitical sentiment further bolstered market confidence.
Outlook
Goldman Sachs raised its 2026 regional earnings growth forecast and increased its 12-month MXAP4J target to 990. The firm remains constructive on North Asia and HALO/energy security themes while maintaining selectivity on AI exposure. The firm's ERLI indicator continues to signal earnings upgrades led by technology stocks. By sector, tech hardware, energy, materials, and industrials are highlighted as potential outperformers based on the RADaR drawdown risk model.
Since 2020, Taiwan (+395%) and Korea (+306%) have significantly outperformed, with both markets now exceeding the UK and Canada in size. Taiwan has become the largest market in the MSCI EM index, followed by China and Korea. No specific securities recommendations or rating changes were provided.
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