Goldman Sachs raises allocation of Japanese stocks to overweight

Glonghui, February 17th｜According to a research report, Goldman Sachs has upgraded its allocation of Japanese stocks from "neutral" to "overweight." This move reflects the view of Goldman Sachs' Japan portfolio strategy team, which raised the 12-month target for the TOPIX index from 3,900 points to 4,300 points. The reason is that they believe Japanese Prime Minister Sanae Takaichi's recent election victory should drive more net inflows of foreign capital and valuation expansion at the index level. Goldman Sachs strategists are optimistic in the first half of the year about Japanese stocks related to defense, critical resources, shipbuilding, electric power resources, the theme of U.S. reindustrialization, and corporate governance reform.