Asian Markets Outperform US as Korea Jumps 11% in Go Global Trade
Updated
Updated · yardeniquicktakes.com · Jun 21
Asian Markets Outperform US as Korea Jumps 11% in Go Global Trade
2 articles · Updated · yardeniquicktakes.com · Jun 21
Summary
Korea surged 11.0% last week, leading a broad Asian rally as investors rotated into overseas markets and away from the US-focused “Stay Home” trade.
Lower oil prices tied to hopes for an end to the Middle East conflict eased inflation pressure, improving the outlook for rate cuts and boosting oil-importing economies across emerging Asia.
Taiwan, EM ex-China, the broader EM Index, Japan and EM Asia gained 3.7% to 7.2%, with semiconductor and AI capex-linked stocks setting the pace.
The US SPY rose just 0.7% and China fell 5.6%, underscoring the gap between Asia’s peace-dividend winners and laggards.
That shift also challenges a long US leadership run: MSCI US beat developed markets ex-US from 2010 to 2024, but the two have performed about the same since then.