Goldman Sachs H2 2026 Outlook: Stick With Winners in Asia Equities, Metals and Gold

Goldman Sachs stresses Asia’s 2026 H1 stock rally still has ample upside, with corporate earnings growth set to be the core driver for H2 returns. The bank advocates a “stick with winners” strategy, recommending investors hold outperforming markets and sectors rather than rotating into laggards.

This year’s Asian equity advance is fundamentally driven, not valuation-led. Nearly 80% of regional gains stem from earnings upgrades, showing capital is increasingly anchored by fundamental improvement.

The bank maintains an overweight stance on North Asian markets, including South Korea, Japan and China A-shares. Top sector picks cover tech hardware, capital goods and banks, supported by structural themes such as AI expansion, power infrastructure build-outs and rising defense spending.

Goldman’s constructive structural view extends to commodities, with strong preference for industrial metals. While the Strait of Hormuz has resumed normal shipping and oil prices have eased, the bank still advises diversified commodity allocation.

Strategists note the Iran geopolitical conflict has reinforced power infrastructure and industrial metal demand themes, rather than traditional oil and gas narratives. Sustained spending on energy security, AI infrastructure, global electrification and defense outlays will keep lifting demand for copper, lithium and aluminium.

Driven by accelerating investment in renewables, EVs, defense systems and data centers,copper demand will structurally outpace mine supply over the coming years.

Goldman Sachs upgraded its end-2026 LME copper price target to $13,735/tonne, and retains a long-term view that prices may need to hit $15,000/tonne by 2035 to incentivize sufficient new supply.

Gold: Bullish Thesis Remains Solid

Despite a strong bullion rally since 2022, Goldman Sachs keeps a positive outlook for gold, with a2026 year-end target of $4,900/oz.

Persistent reserve diversification from emerging market central banks remains the key structural support. While higher rates may temporarily curb gold ETF demand, lingering geopolitical uncertainty and global fiscal concerns will sustain medium-term upside for bullion.