Goldman Raises Asia-Pacific Equity Target as Tech Earnings Outlook Brightens

Goldman Sachs has increased its target for the MSCI Asia Pacific Index to 1,120 from 1,080, representing a 26% price gain from current levels.

This revision reflects 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, citing strong technology sector earnings growth, attractive valuations in certain markets, and improved positioning after recent market adjustments.

Goldman noted that near-term volatility may continue due to rising bond yields, Middle East tensions, and the upcoming US midterm elections. However, the firm expects a more favorable environment following these events and recommends derivative strategies for both downside protection and upside participation.