Here are 20 of Goldman Sachs’ favorite Asian stocks right now

Published Mon, Nov 8 20217:00 PM EST

Lucy Handley @in/lucy-handley-b2b0a61a/@lucyhandley

Goldman Sachs has updated its Asia stock picks across a number of themes including climate change and a commodity "supercycle." Here are 20 of its favorites. The investment bank has updated dozens of its baskets of Asian stocks which it says will help investors position for an "earnings downcycle amid slowing growth and rising cost inflation concerns." "Our strategy baskets provide investors with a unique investment platform to track Asian equities through macro slices, geographic exposure, styles/factors, positioning and thematic lenses," the analysts, led by Alvin So, wrote in a research note published Oct. 27. 'Growth at a reasonable price' Picks in the bank's "growth at a reasonable price" basket include real estate firms New World Development , based in Hong Kong, CapitaLand , based in Singapore, and Powerlong Real Estate , a Chinese firm that trades on the Hong Kong stock exchange. "Our Growth at a Reasonable Price (GARP) basket consists of stocks with high sales and earnings growth potential and low valuations," the analysts wrote. Other picks in the basket include financial sector stocks United Overseas Bank , based in Singapore, Indian firm Mahindra & Mahindra Financial , and Thai company Bangkok Bank Public . Retail investor favorites Goldman's "Asia Retail Favorites" basket is made up of stocks it says are the most popular among retail investors. "These stocks outperformed with surging retail activities," according to the analysts. Stocks in the basket include China Mobile , materials firm China Hongqiao and Sino Land , which all trade on the Hong Kong stock exchange. Banking firms Far East Horizon and Bank of East Asia (also trading on the Hong Kong stock exchange) are on Goldman's list too. Climate theme The bank picked a basket of stocks under an "Environmental & Renewables" theme. "We continue to like this theme as the importance of environmental protection and renewable energy to meet climate change goals remains the focus of policymakers," the analysts stated. Stock picks on its list include Hong Kong-listed semiconductor firm Xinyi Solar and China Longyuan Power , as well as Daqo New Energy , which is listed on the NYSE. Commodity picks Commodity prices have been on a tear this year: the MSCI World Energy Index is up 41% in 2021, buoyed by a sharp recovery in oil prices and soaring natural gas prices. "Commodity cyclicals have recently outperformed along with higher commodity prices," Goldman analysts wrote on Oct. 27. "The commodity super cycle and concerns over higher cost inflation should support this strategy to lead further." They added that: "Relative valuations [remain] undemanding as the relative performance hasn't fully caught up the commodity rally in the past year". Stock picks on Goldman's commodity cyclicals list includes Indian conglomerate Reliance Industries , China's largest oil and gas producer PetroChina and South Korea's SK Innovation. Taiwan's Formosa Petrochemical , LG Chem , South Korea's largest chemicals company, and Taiwan's Nan Ya Plastics are also among Goldman's picks in the materials space.

A Goldman Sachs Group Inc. logo hangs on the floor of the New York Stock Exchange in New York, U.S., on Wednesday, May 19, 2010.

Daniel Acker | Bloomberg | Getty Images

Goldman Sachs has updated its Asia stock picks across a number of themes including climate change and a commodity "supercycle." Here are 20 of its favorites.