Goldman Sachs says AI and energy resilience are creating a North-South divide in Asian markets
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- North Asian markets are outperforming those in the south of the continent, thanks to tougher insulation from energy shocks, stronger fiscal ability and AI developments, according to a senior Goldman Sachs strategist.
- Moe described some North Asian markets as seeing a "massive outperformance" compared to South Asia, according to a transcript of Goldman Sachs' "Exchanges" podcast seen by CNBC.
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North Asian markets are outperforming those in the south of the continent, thanks to tougher insulation from energy shocks, stronger fiscal ability and AI developments, according to a senior Goldman Sachs strategist.
North Asian markets have "greater buffer stocks" and can afford to pay a higher price for oil and gas, compared to South Asia, which has "much fewer buffers and doesn't have the ability fiscally to offset the pass-through of higher energy prices to the economy," said Tim Moe, Chief Asia Pacific regional equity strategist and co-head of macro research in Asia at Goldman Sachs Research.