HONG KONG, March 6 (Reuters) – Goldman Sachs has increased its target price for emerging markets stocks, projecting that the AI-powered rally in Chinese equities could boost other markets.
The brokerage raised its 12-month target for the MSCI Emerging Markets Index by 3%, from 1,190 to 1,220. This suggests an 11% potential upside from current levels.
This adjustment reflects Goldman Sachs’ recent revision to its MSCI China target, driven by the impact of artificial intelligence adoption on valuations, which affect earnings, multiples, and portfolio flows. The firm noted that this positive trend could extend to the broader emerging markets equity landscape, where many markets sensitive to China have been underperforming compared to their historical correlation with Chinese equities.
The China rally might also find support in a stimulus-driven rebound in A-shares. Goldman Sachs highlighted that the recently announced fiscal stimulus at the “Two Sessions” this week is likely to stabilize growth and improve market sentiment.
(Reporting by Jiaxing Li in Hong Kong; Editing by Sherry Jacob-Phillips)
