Morning Update: HUF Webcast, BRL Thoughts, North Asia Equities and Markets Macro

Goldman Sachs maintains a bullish stance on North Asia equities (Korea/Taiwan) while identifying structural correction risks for the Brazilian Real. The report also highlights the popular support and trade potential of Hungary's convergence towards the Euro.

Key Takeaways

• 1.Bullish outlook on North Asia equities, raising the Korea KOSPI target to 12,000 (37% potential price return) and upgrading Taiwan to Overweight based on strong semiconductor earnings.
• 2.Convergence trade in Hungary (HUF) remains attractive as the country aims for Euro membership by 2030, with targets for EUR/HUF between 335 and 350.
• 3.Bearish correction expected for the Brazilian Real (BRL) due to large 'lazy' positioning, fiscal concerns, and the end of grain seasonality.

Table of Contents

• 1) HUF Webcast Key Takeaways
• 2) EM FX TRADING (CHOHFI) – BRL: Scope For A Larger Correction?
• 3) ASIA PORTFOLIO STRATEGY (MOE) - North Asia Update & 12k KOSPI Target
• 4) TONY PASQUARIELLO – Markets / Macro

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