While improving economic conditions and the continued monetary easing prompted the strategists to raise their earnings forecasts, the gauge’s path higher “could be bumpy, with markets correcting before rallying to year-end,” they wrote in an Aug 13 note. Their short-term target implies a drop of 5%-6% in the next three months.
Stocks in Asia outside Japan look set to extend their rebound from the depths of the coronavirus-fueled selloff as earnings rise and the dollar weakens in the year ahead, according to Goldman Sachs Group Inc.
The investment bank raised its target for the MSCI AC Asia Pacific ex-Japan Index to 590 from 510 previously, according to analysts including Timothy Moe, chief Asia-Pacific equity strategist and co-head of macro research. The new level implies a gain of more than 4% from the current value.
