Skip navigation

CNBC Stock Blog

RSS FEED

» Help

Current DateTime: 11:37:09 22 Nov 2009
LinksList Documentid: 30328029
Emerging Asia ETFs: The Next 'Tiger' Stocks?
Published: Friday, 22 May 2009 | 10:09 AM ET
Text Size
By: Tom Lydon
Editor, ETFTrends.com

This post is part of a regular series written by ETF Trends editor Tom Lydon, special for CNBC.com.

Lately, Asia’s emerging markets have been demonstrating resilience in the face of the global economic crisis that many may have underestimated. As evidence of this, their exchange traded funds (ETFs) were among the first emerging market funds to once again move into positive trends.

While Asia might not be returning to its double-digit growth rates of years past anytime soon, there is still plenty of progress in the region:

Investor Spring Cleaning: Special ReportInvestor Spring Cleaning - A CNBC Special Report
- Domestic demand in the region could rise by nearly 7 percent next year, up from 4-5 percent this year

- Export figures suggest the worst could be over; South Korea’s exports rose a seasonally adjusted annualized rate of 53 percent in the first quarter

- Taiwan’s exports grew 29 percent in the first quarter

- China’s industrial production rose by an annualized 25 percent in the first quarter, and the economy is forecast to grow 8 percent this year

What accounts for the bounce? Much of it has to do with the fiscal stimulus efforts in the region: China, Japan, Singapore, South Korea, Taiwan and Malaysia have all delivered packages of 4 percent or more of GDP for this year — twice as much as the U.S. stimulus.

The efforts to jump-start the economy could work better in Asia, too, because of lower corporate and household debt, so any money given to consumers will more likely be spent than saved.

Asia can be accessed through a number of single-country funds such as:

iShares MSCI Hong Kong Index [EWH  Loading...      ()   ]

iShares MSCI South Korea Index [EWY  Loading...      ()   ]

iShares MSCI Singapore Index  [EWS  Loading...      ()   ]

iShares MSCI Taiwan [EWT  Loading...      ()   ]

iShares FTSE/Xinhua China 25 Index [FXI  Loading...      ()   ]

If you’re finding it a challenge to choose the one country that could outperform, a broad Asia ETF, such as the PowerShares FTSE RAFI Asia Pacific ex-Japan, might fit the bill. A simple way to determine the current trend of these ETFs is to look at their individual 200-day moving averages.

_____________________________

_____________________________

Tom Lydon is the editor of ETF Trends and author of iMoney: Profitable ETF Strategies for Every Investor.

Disclaimer

© 2009 CNBC.com
Add This share icon
Text Size
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 02:35:20 22 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 02:42:00 22 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 02:35:20 22 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 02:35:20 22 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters