At midday on 5 November 2026, South Korean and Taiwanese equities fell amid weakness in AI hardware, while Hong Kong and mainland Chinese markets were stronger; funds also flowed into sectors including internet platforms and renewable energy.
JPMorgan expects battery demand to keep growing in 2027, yet has downgraded several companies in the supply chain. Meanwhile, changes in the earnings mix at Weichai Power and Formosa Plastics Group have created new areas of interest.
South Korean valuations have fallen to their lowest since the financial crisis, while Asian technology stock valuations have halved. At the same time, earnings upgrade momentum in markets that previously led gains is near its peak. Bernstein favors growth stocks to participate in a potential rebound while retaining allocations to value and high-dividend stocks.
Asian technology stocks have been sold off, but the regional earnings consensus for 2027 is still being revised upward. Goldman Sachs cut its KOSPI target from 12,000 to 9,000 points, while arguing that Korean valuations already price in excessively deep earnings downgrades. Its allocation approach places greater emphasis on value, financial quality and cash returns.
The 12-month target for the KOSPI was cut from 12000 to 9000 points, but Goldman Sachs believes pessimistic pricing in the memory sector has spilled over into other industries. Asian allocation places greater emphasis on earnings delivery, balance sheets and valuation discipline, while the AI supply chain also requires a distinction between demand growth and the pace at which profits materialize.
Goldman Sachs cut its KOSPI target from 12,000 to 9,000 points, while still seeing more than sixty percent upside. Its view rests on the Korean market’s deep discount relative to earnings; its regional allocation shifts toward cash flow, quality and shareholder returns, avoiding a bet solely on an index rebound.
Citi’s tracking shows that China, Taiwan and South Korea ETFs together attracted 30 billion US dollars in a single week, while foreign investors were net sellers in Taiwan and South Korea over the same period. Fund subscriptions and foreign trading diverged, and global inflows also showed a clear preference for ETFs.
