- Six companies, including Alibaba, feature on the conviction list of Goldman Sachs’ Asian Stocks Included In Goldman’s List.
With the second half of the year kicking off with a week shortened by holidays, jobs data remain at the end of it.
However, Tesla may have burst a firecracker for technologies with pretty few optimistic sales numbers out on Sunday.
Goldman Sachs is confident over a number of Asian markets at present, despite what it was expected to be a “subdued” market for the third quarter of the year.
The Vice President of the Asia Pacific Portfolio for Goldman Sachs, Sunil Koul, said he is expecting a “moderate” return of about 11% on the Asian stocks this year, with dampened returns in this quarter before recovering in the final three months.
Last week he said to CNBC’s “Street Signs Asia” that he is quite positive about China, Japan, and Korea in particular.
Stocks for Japan rallied strongly this year- Nikkei 225 is up about 30% thus far while outpacing U. S equities; however, Koul said there is still a lot further to go.
Goldman is expecting 24% earnings-per-share growth within the next three years while dividing the projection that Japan’s Topix index will reach 2,500, which is almost an 8% escalation from Monday’s close.
Goldman is also overweighting China at the moment, given it expects a calculated recovery for the economy of the country given the further policy easing.
“The general feedback we have been hearing from investors is : look, there may not be a lot of downside from current levels given where the market is trading. And they do acknowledge that there could be a truly tactical rally in China which is our view – which is why we are overweight.”
“Within Korea we lean towards semis, internet, chemicals and autos, which benefits from structural themes of AI and batteries/ EVs/ decarbonization,”