(Bloomberg) -- Shares in Taiwan, South Korea and the tech hardware sector “have over-delivered” this year and are looking particularly vulnerable to shockwaves from the US banking stress, according to Goldman Sachs Group Inc.
Taiwan and the information technology sector are more sensitive to US financial conditions and economic growth than most other parts of the Asia-Pacific region excluding Japan, strategists including Timothy Moe wrote in a note Friday. These areas, as well as Korea, have yet to price in recent macro developments, they said.
Benchmarks for Korea and Taiwan have fallen less than the broader MSCI Asia Pacific Index this week, as failures of US lenders — compounded by turmoil at Credit Suisse Group AG — jolted markets globally. The gauges have outperformed major regional peers in 2023, climbing more than 6% on bets that the semiconductor cycle will bottom out.
On the flipside, Goldman Sachs said that India and Thailand, as well as the utilities and consumer retail sectors, are pockets of the region that have “underperformed their macro backdrop” and might be more insulated.
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