Goldman Sachs strategist: Raise Asian equity targets, upgrade Hong Kong stock ratings.

Goldman Sachs strategists have raised their expectations for Asian stock markets, citing a more favorable macroeconomic environment and increased certainty regarding tariffs. Led by Timothy Moe, the strategists raised their 12-month target for the MSCI Asia Pacific index by 3% to 700 points, implying a 9% return in US dollar terms during this period. The team also upgraded their rating on Hong Kong stocks to "overweight," stating that they will be one of the main beneficiaries as the Fed begins a loosening cycle and the US dollar weakens. They added that markets in countries like the Philippines are among the most sensitive and stand to benefit the most from this trend. The strategists said, "Tariffs and loose monetary policy could be important macro factors affecting Asian stocks in the third quarter." They noted that even if the final tariff rates are slightly higher than current baseline expectations, "the impact on fundamental growth may not be as severe as feared by the market in the early second quarter."