These Asian markets have been ‘bangers' this year. Here's why they have further to rally, says Goldman Sachs

Asian equity markets are experiencing a remarkable rally in 2026, with South Korea and Japan significantly outperforming Wall Street, according to a recent Goldman Sachs analysis. The AI-driven technology sector has been a primary catalyst for this extraordinary market performance.

The South Korean KOSPI index has been particularly impressive, surging over 31% year-to-date and more than doubling since the end of 2024. Leading semiconductor giants Samsung Electronics and SK Hynix have been the primary drivers, with their shares rising 51% and 35% respectively, fueled by unprecedented AI-linked demand.

Goldman Sachs' global head of hedge-fund coverage, Tony Pasquariello, remains bullish on these markets. Despite the substantial gains, he believes investors should maintain their positions, raising the KOSPI target to 6,400 and suggesting further potential for growth.

The remarkable performance underscores a broader shift in global investment strategies, with institutional investors increasingly looking beyond traditional U.S. markets for growth opportunities. This trend suggests a potential reallocation of capital towards Asian technology and semiconductor sectors.

For precious metals investors, these developments signal important market dynamics. The technology-driven rally could potentially impact silver and gold demand, particularly in industrial applications and investment vehicles tracking these high-growth markets.