Goldman Favors North Asia’s Tech-Heavy Stock Markets Over South

North Asia’s tech-heavy equity markets offer better risk-reward than their South and Southeast Asian peers that are relatively more vulnerable to the oil shock triggered by the Iran war, according to Goldman Sachs Group Inc.

The investment bank has initiated a “relative value trade” by going long on South Korea and Taiwan, and shorting India, Philippines and Thailand, analysts including Kamakshya Trivedi and Sunil Koul wrote in a note. While China’s economy is relatively better-placed in the current energy shock, “earnings delivery will likely be needed to catalyze a stronger up move in the market,” they added.