Asia Pacific Weekly Kickstart MXAPJ fell another 1 , as higher oil prices and US rates continued to drive outflows and press...

Portfolio Strategy Research 10 October 2026 | 12:52AM SGT

MXAPJ fell another 1%, as higher oil prices and US rates continued to drive outflows and pressure Cyclicals; Asia is increasingly concentrated, yet differentiated

MXAPJ fell 0.7%, with Taiwan (+2%), Hong Kong and 2nd-largest equity region at US$50tn, but its market Timothy Moe, CFA | Philippines (each +1%) outperforming Korea (-6%), structure has shifted materially, with tech accounting for Goldman Sachs (Singapore) Pte

Singapore (-5%) and Malaysia (-2%). Telcos, Consumer Retail around half of market cap and earnings, Taiwan and Korea Alvin So, CFA | and Staples led, while Capital Goods, Autos and Tech representing half of MXAPJ, and the top 10 stocks over Goldman Sachs (Asia) L.L.C.

Hardware & Semis lagged. EM Asia ex-China recorded 40%. This concentration increasingly shapes both earnings Terry Chan | US$7.5bn of outflows this week, led by Korea (-US$4.9bn) and valuations, making a monolithic approach to Asia Goldman Sachs (Asia) L.L.C.

and India (-US$1.3bn). US Treasury yields reached outdated, and a greater degree of specificity is needed to John Kwon | multi-decade highs earlier in the week before retreating on help drive investment returns. We favor tech-driven North Goldman Sachs (Singapore) Pte robust auction demand. September FOMC minutes showed Asia, complemented by selective diversification, with AI, Kinger Lau, CFA most participants favored another rate hike by year-end, power, non-tech earnings compounders and shareholder | Goldman Sachs (Asia) L.L.C. while maintaining a data-dependent stance. Fed Governor returns as key themes. Sunil Koul Waller similarly pointed to further tightening, with flexibility | Goldman Sachs International Public-Sector Investor Rebalancing Pressure Monitor: around execution. On macro, the US trade deficit widened Bruce Kirk, CFA We introduce a proprietary monthly tracker under Index | more than expected in August on higher industrial Goldman Sachs Japan Co., Ltd. Strategy. The framework currently tracks over US$7tn of machinery and oil imports, while Services PMI and initial Amorita Goel, CFA strategic asset allocation (SAA)-managed assets across | claims were in line. Taiwan exports beat expectations on Goldman Sachs (Singapore) Pte major public-sector investors in Asia and a select group of sustained tech strength, with our economists raising their European institutions with sufficient disclosure. Our GDP growth forecast. India’s RBI delivered a widely expected framework suggests ~US$22bn of net global equity selling 25bp hike and raised its growth and inflation forecasts, pressure in October (~US$9bn in Asia), ranking in the maintaining a hawkish bias. Key upcoming events are 14%ile of monthly net equity flows since 2020. summarized within.

Charts of the Week Investing in a differentiated Asia: Asia is now the world’s

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Goldman Sachs Asia-Pacific Weekly Kickstart

Charts of the Week: Investing in a differentiated Asia

Exhibit 1: Taiwan and Korea now account for half of the MXAPJ index weight, Exhibit 2: Information technology is now 43% of the regional index weight and having displaced China which was the dominant market has displaced the financial sector which previously dominated

MSCI AC Asia Pacific ex Japan Index country weights (%) Index Cap Weight by Sector, MXAPJ 100 New Zealand 100% Telcos Utilities Health Care 90 Australia 90% Energy 80 80% 70 Materials India 70% Cons Stap 60 ASEAN & Industrials Others 60% 50 Internet & 50% Cons Disc Entertainment 40 Taiwan 30 40% Info Tech Korea 20 30% Property Hong Kong China 10 20% 0 10% Financials %

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

Exhibit 3: The top 10 stocks now account for a record high 41% of regional index Exhibit 4: Asian equity markets are now 6 of the top 10 global markets and the cap APAC region is the second largest

MXAPJ Top 10 Stocks Aggregate Weighting Exchange Market Cap of Top 10 Largest…