Key Takeaways
- Goldman Sachs (GS) raised its Asia-Pacific ex-Japan index target to 1,120, citing a multi-year semiconductor memory cycle as a primary driver.
- South Korean exports to India surged 30.8% in the first eight months of 2026, reaching $16.8 billion due to explosive demand for AI-related chips.
- China’s most-active coking coal contract fell 3.7% to 1,608 yuan, hitting its lowest level since August 28 amid shifting supply-demand dynamics.
- Geopolitical instability in Yemen escalated as the national armed forces conducted 13 air strikes against Houthi militia positions across multiple districts.
- Natural disaster disruptions hit Indonesian logistics, with Jakarta’s main international airport remaining closed until 6 p.m. local time Monday due to volcanic ash.
Goldman Sachs (GS) has officially raised its target for the MSCI Asia-Pacific ex-Japan index, moving the benchmark projection from 1,080 to 1,120. The investment bank highlighted the durability of the semiconductor memory cycle, which analysts expect to last between three and five years, as the "one big reason" for the upward revision. This optimistic outlook is further supported by the divergence of North Asian markets, which continue to pull ahead on the strength of the global artificial intelligence (AI) trade.
In a related boost for regional tech, South Korea reported a massive 30.8% jump in exports to India for the January-August period. Total shipments reached $16.8 billion, up from $12.84 billion a year earlier, according to the Korea Trade-Investment Promotion Agency (KOTRA). This surge is almost entirely attributed to the unprecedented demand for high-end memory chips produced by industry leaders like Samsung Electronics (SSNLF) and SK Hynix (HXSCL).
Meanwhile, China’s commodities market faced downward pressure as the most-active coking coal contract on the Dalian Commodity Exchange slid more than 3.7%. The contract reached a low of 1,608 yuan per metric ton, its weakest point in over a week. Market participants noted that while supply remains relatively tight, concerns over steel mill margins and potential production adjustments have dampened the recent bullish trend.
Geopolitical risks in the Middle East saw a fresh flare-up as Yemen’s armed forces carried out 13 targeted air strikes against Houthi positions. The strikes hit equipment, gatherings, and a missile launch pad across the Al-Bayda province. These actions follow a period of intensified fighting near the strategic Bab al-Mandab Strait, a critical corridor for global maritime trade and energy shipments.
In Southeast Asia, travel and logistics have been severely hampered by the eruption of Mount Anak Krakatau. Indonesia’s Soekarno-Hatta International Airport (CGK) and seven other regional hubs will remain closed until at least 6 p.m. local time Monday. The closure has already affected over 1,500 flights and stranded approximately 170,000 passengers, as volcanic ash continues to blanket the capital and surrounding provinces.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.