Goldman Sachs has taken a bullish stance on India and Asia ex-Japan stocks, forecasting a 19% return for the MSCI Asia ex-Japan Index in dollar terms for 2027. The bank's optimism is driven by expected earnings growth, despite potential volatility from uncertainty surrounding artificial intelligence.
The investment firm upgraded its outlook on China H-shares and India to overweight, while downgrading China A-shares and Taiwan to market weight. This adjustment aims to balance exposure to AI-related markets. Goldman Sachs maintained its overweight view on South Korea and Japan.
Analysts led by Timothy Moe noted in a report that market drawdowns in the second half of 2026 have created attractive valuations with significant intraregional variation. The MSCI Asia ex-Japan gauge has lost about 13% since its June peak, though it remains up approximately 11% for the year, largely due to strong performances in South Korea and Taiwan.