On March 6, Goldman Sachs raised its target price for emerging market stocks. It anticipated that the surge in Chinese equities, driven by AI technology, could also benefit other markets. The brokerage increased its 12-month target for the MSCI Emerging Markets Index by 3% to 1,220 from 1,190, suggesting an 11% potential upside from the current levels.

This adjustment is attributed to Goldman Sachs' higher target for MSCI China, influenced by the impact of AI on valuations via earnings, multiples, and portfolio flows. The firm highlighted the potential for this trend to impact other emerging markets, noting that many China-related markets have been underperforming relative to their historical correlation with Chinese equities.

Goldman Sachs further pointed out that the rally in China may receive additional support from a stimulus-driven uptick in A-shares. The fiscal stimulus announced during the recent "Two Sessions" is expected to help stabilize growth and boost market sentiment.