Goldman raises Asia-Pacific equity target on tech earnings outlook

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.

The 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.

The firm expects a more favorable environment following these events and recommends derivative strategies for both downside protection and upside participation.