Goldman Sachs Raises Taiwan to Overweight, Cuts H-Shares on June 3 Amid Asia AI Rally

According to Goldman Sachs on June 3, the investment bank raised Taiwan to overweight, increased its target price for South Korean shares, cut Hong Kong-listed H-shares to market weight, and maintained mainland A-shares at overweight. The upgrades reflect North Asia's strongest earnings growth driven by technology sector exposure. Goldman noted the MSCI Asia Pacific ex-Japan index gained 27% year to date, but only down 4% excluding South Korea and Taiwan, highlighting the region's AI leadership. However, the bank cautioned that pullback risks are rising as the rally narrows and speculative activity increases.

North Asia has greater buffers against energy supply shocks and anchors the global AI trade, while South Asia faces higher energy cost pressures and limited AI-related listed companies.