Goldman Sachs has forecast a 19% return for the MSCI Asia ex-Japan Index in dollar terms for 2027, driven by earnings growth. The bank's outlook comes with a note of caution, as uncertainty surrounding artificial intelligence could lead to market volatility.
The investment firm adjusted its regional allocations, upgrading China H-shares and India to overweight status. Meanwhile, it downgraded China A-shares and Taiwan to market weight to better balance its exposure to AI-related risks. Goldman Sachs maintained its overweight stance on South Korea and Japan.