Asia Pacific Weekly Kickstart MXAPJ advanced 3 , led by a sharp rebound in Korea and Taiwan amid renewed foreign inflows, wh...

Portfolio Strategy Research 14 August 2026 | 11:19PM SGT

MXAPJ advanced 3%, led by a sharp rebound in Korea and Taiwan amid renewed foreign inflows, while CY2Q26 earnings have remained robust, with positive surprises led by cyclical sectors

MXAPJ rose +2.7%, with Korea (+13%), Taiwan (+3%), and MSCI Index Review: The upcoming rebalancing (effective Timothy Moe, CFA | Singapore (+1%) outperforming China offshore (-3%), August 31) is expected to drive over US$35bn of gross Goldman Sachs (Singapore) Pte

Australia, and Hong Kong (each -2%). Tech Hardware & two-way passive flows across APAC, led by inflows into Alvin So, CFA | Semis, Capital Goods, and Health care led, while Japan, India, Taiwan, and China, and outflows from Korea, Goldman Sachs (Asia) L.L.C.

Internet/Media, Materials, and Consumer Retails lagged. EM Australia, Malaysia, and Indonesia. Info Tech should attract John Kwon | Asia ex-China saw large inflows (+US$9.6bn), driven by the largest inflows among sectors. Goldman Sachs (Singapore) Pte Taiwan (+US$5.4bn) and Korea (+US$4.2bn). In the US, July MF Allocation: Based on early reported July mutual fund Kinger Lau, CFA core CPI was in line and headline PPI came in softer than | Goldman Sachs (Asia) L.L.C. holdings data, both EM and Asia funds added exposure to expected. In China, CPI and PPI both surprised to the Korea, while EM funds cut China and India, and Asia funds Sunil Koul downside, while the Q2 PBOC report signaled a more | Goldman Sachs International trimmed Taiwan and Hong Kong. Sector-wise, Korea Tech accommodative policy stance. Indonesia’s President Bruce Kirk, CFA saw the largest increases, while Taiwan Tech, Korea Prabowo pledged faster growth alongside tighter fiscal | Goldman Sachs Japan Co., Ltd. Industrials, and China Banks saw the largest reductions. discipline and announced plans for a centralized Amorita Goel, CFA | commodities exchange. Malaysia’s Q2 GDP beat on Korea Leveraged ETFs: Korea leveraged ETF AUM has Goldman Sachs (Singapore) Pte AI-related exports, Singapore‘s GDP met expectations, and rebounded from a US$16bn trough to US$25bn, lifting India’s CPI rose to a 19-month high. Key upcoming data and leveraged exposure to 1.9% of market free float, the events are summarized within. recovery has been driven mainly by asset returns.

Earnings Review: MXAPJ CY2Q26 earnings (68% reported) Charts of the Week +162%/+42% yoy/qoq, with 47% beats vs. 24% misses and Momentum Reignition: Since the MXAPJ trough on July 30, a median surprise of +4.5% Korea and Taiwan, have reasserted their leadership, driven primarily by technology and deep cyclical sectors. Momentum factor has rebounded 10% from its trough, though it remains 16% below its late-June peak.

Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to

Goldman Sachs Asia-Pacific Weekly Kickstart

Charts of the Week: Momentum Reignition

Exhibit 1: Since the MXAPJ trough on July 30, the year’s top-performing Exhibit 2: The equity rebound has been driven primarily by Technology and markets, Korea and Taiwan, have once again taken the lead, significantly deep cyclical sectors, particularly Industrials and Materials, while Defensives outperforming other regional markets and Financials have been modest drags on performance

MXAPJ Markets Perf. Before Jul 30 vs. After Korea MXAPJ Sectors Perf. Before Jul 30 vs. After 20% 47%, 29% 15%

Return from Jul 30 to Current Return from Jul 30 to Current Industrials Info. Tech. Taiwan 45%, 21% MXAPJ 10% Health Care 10% MXAPJ China-A Singapore 5% Cons. Disc. India Materials Energy Indonesia Thailand 0% Philippines 0% Utilities Malaysia Financials China Cons. Stap. Hong Kong -5% Comm. Serv. -10% Note: CSI 300 is shown as -10% China-A -20% -15% -40% -20% 0% 20% 40% -20% -10% 0% 10% 20% Return from Jan 1 to Jul 30 Return from Jan 1 to Jul 30

Source: FactSet, Goldman Sachs Global Investment Research Source: FactSet, Goldman Sachs Global Investment Research

Exhibit 3: The Momentum factor (long/short) has rebounded 10% from its Exhibit 4: Despite US$9bn of inflows into Korea and Taiwan since…