Asia Pacific Weekly Kickstart MXAPJ closed up 0.5 in a volatile week, as Greater China rebounded on moderating foreign outf...

Portfolio Strategy Research 25 July 2026 | 12:44AM SGT

MXAPJ closed up 0.5% in a volatile week, as Greater China rebounded on moderating foreign outflows, Korea remained volatile, and commodities led gains with oil back at US$100/bbl

MXAPJ rose 0.5%, with Taiwan and China A (+3% each) and Charts of the Week Timothy Moe, CFA | Hong Kong (+2%) outperforming the Philippines, Indonesia, Momentum Reversal and Positioning Unwinds: Since the Goldman Sachs (Singapore) Pte

and Korea (-2% each). Materials, Energy, and Insurance & MXAPJ peak on June 22, YTD outperformers (Korea, Alvin So, CFA | Div. Fins led, while Internet/Media, Software & Services, and Taiwan, and China A) have corrected, while Hong Kong and Goldman Sachs (Asia) L.L.C.

Autos lagged. EM Asia ex-China saw muted FII outflows ASEAN have gained moderately. The rotation has been John Kwon | (-US$0.2bn), driven by Taiwan (-US$2.2bn) and partly offset sharper at the sector level and closely tied to Goldman Sachs (Singapore) Pte by Korea (+US$1.4bn). On geopolitics, US-Iran tensions AI/momentum exposure. The Momentum factor is down Kinger Lau, CFA extended into a second week, lifting Brent crude 16% this ~20% from its peak, while Earnings Revision factor is down | Goldman Sachs (Asia) L.L.C. week to US$100/bbl for the first time since May. The Trump only ~8%, suggesting earnings have provided some buffer. Sunil Koul administration also announced new 10% and 12.5% tariffs Korea and Taiwan have seen combined foreign outflows of | Goldman Sachs International on 60 trading partners as the temporary 10% global tariff US$144bn, including US$57bn since late June; in contrast, Bruce Kirk, CFA expired on Friday. In China, fiscal revenue and expenditure foreign investors net bought South Asia by US$4bn over the | Goldman Sachs Japan Co., Ltd. growth improved in June, while consumption momentum past month, after earlier net selling of US$34bn. Amorita Goel, CFA | softened and land-sale revenue continued to fall. The sharp Goldman Sachs (Singapore) Pte Korea Leveraged ETFs Update: Korea leveraged ETF AUM Q2 growth deceleration has raised expectations for stronger has fallen from a peak of US$53bn to US$26bn, reducing easing rhetoric at the upcoming July Politburo meeting. In leveraged exposure to 2.1% of market free float. Investors Korea, Q2 GDP showed a broad slowdown largely in line with added US$8bn of exposure during the market correction consensus, with exports remaining resilient, while the since June 22 while taking profits and selling US$1bn during historic equity rally is expected to deliver only a modest the recovery earlier this week. Although leveraged ETF daily consumption boost. Taiwan June industrial production beat rebalancing flows have declined to around 10–15% of daily expectations, prompting an upward revision to Q2 GDP, turnover on large-move days over the past week due to while Bank Indonesia kept rates on hold. Key upcoming reduced AUM, compared with the 20–30% range since data/events are summarized within. June, the impact remains meaningful.

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Goldman Sachs Asia-Pacific Weekly Kickstart

Charts of the Week: Momentum Reversal and Positioning Unwinds

Exhibit 1: Since the MXAPJ peak on June 22, the Exhibit 2: The rotation has been more significant at Exhibit 3: YTD performance and the recent rotation YTD outperforming markets (Korea, Taiwan, and the sector level, with Info Tech, Industrials, and have been closely correlated with exposure to AI China A) have corrected, while Hong Kong and Materials seeing the sharpest corrections, vs. gains and momentum ASEAN have managed to gain moderately in Health Care, Financials, and Consumer sectors

YTD Correlations of sector vs equal-weight MXASJ with AI and Momentum MXAPJ Markets Perf. Before Jun 22 vs. After MXAPJ Sectors Perf. Before Jun 22 vs. After 10% 10% 0.6

Return from Jun 22 to Current Return from Jun 22 to Current Singapore

YTD correlation with Momentum Factor Health Care Hong Kong 5% 5% Cons. Disc. Cons. Stap. 0.4 Info. Tech.…