Goldman Sachs(US:GS) Hua Er Jie Jian Wen·2025-07-11 07:21Group 1 - Goldman Sachs has upgraded the outlook for Asian stock markets, citing increased certainty in tariff policies and a loose monetary environment as positive factors for the region's stock markets [1] - The firm raised its 12-month target price for the MSCI Asia Pacific ex-Japan index by 3% to 700 points, anticipating a 9% return in USD terms [1] - The upgrade is primarily driven by a more favorable macro environment and enhanced certainty in tariff policies, with the firm noting that the negative impact on fundamental growth from slightly higher tariff rates may not be as severe as previously feared [1] Group 2 - Goldman Sachs has upgraded its rating for Hong Kong stocks from underweight to market weight, based on expectations that the Federal Reserve's rate-cutting cycle will weaken the USD, benefiting markets like Hong Kong [1] - The firm highlighted that the Hang Seng Index and MSCI Hong Kong Index have recorded at least an 18% increase since the downgrade to underweight in November of the previous year [1] - The firm also identified the Philippines as one of the most sensitive regional markets to the Federal Reserve's easing policies [1] Group 3 - Earnings growth is expected to be the main driver of returns in regional stock markets, with a forward P/E ratio of 14 times aligning with the "macro model fair value," providing a reasonable valuation basis for future earnings [2] - Goldman Sachs maintains an overweight stance on the stock markets of China, Japan, and South Korea, while downgrading Malaysia's stock market rating to underweight [1][2]