Goldman Sachs is currently bullish on many Asian markets, although it expects a “sluggish” third quarter of the year. Sunil Koul, the bank’s vice-president of Asia-Pacific portfolio strategy, said he expects Asian stocks to return a “moderate” 11% this year, with lower returns in the current quarter and a recovery in the final three months. . He told CNBC’s “Street Signs Asia” last week that he was particularly bullish on Japan, South Korea and China. Japanese stocks have risen strongly this year, with the Nikkei 225 up about 30 percent year to date, outperforming U.S. stocks, and Cole said there is room for further gains. Goldman Sachs expects earnings per share to rise 24% over the next three years, driving its forecast for Japan’s Topix to hit 2,500, up nearly 8% from Monday’s close. Goldman Sachs is also now overweight China, as it expects a tactical recovery in the Chinese economy as policy is eased further. “The general feedback we’re hearing from investors is: Look, there’s probably not much downside from these levels given how the market is trading. And they do acknowledge that there could be a real tactical rebound in China, which is Our point — that’s why we’re overweight,” Kerr said. Chinese stocks have performed weakly this year compared with other markets around the world, with shares falling on concerns about a weak cyclical recovery. Year-to-date, the Shanghai Composite is up just 5%, while the Shenzhen Component is up 1%. In comparison, the S&P 500 surged 16%. Goldman Sachs expects profits in South Korea to recover due to “positive changes” in DRAM pricing. DRAM is a type of semiconductor memory required for data processing. “In South Korea, we favor semis, internet, chemicals and autos, sectors that benefit from AI and structural themes of batteries/EVs/decarbonization,” Goldman Sachs said in a June 25 note. Screening In the report, Goldman Sachs screened 40 Asia-Pacific stocks with improving earnings growth momentum, stable EPS revisions, and reasonable valuations. “With valuations generally around fair levels, we believe earnings delivery will be a key driver of equity performance,” the bank wrote. The six stocks below are all on screen and are all Goldman Sachs Convincing Best Buys on the list: