Taiwan’s iShares MSCI Taiwan Index (EWT), which is up 42.5% year-to-date, is being boosted by its technology sector, and information tech makes up around 60% of the ETF. Semiconductors are making a come back and EWT is seeing the benefits.
Many Asian countries now realize that they need to boost domestic consumption or risk being fettered to the economic health of Western countries, according to the Canadian Press.
Japan has started to focus away from exports to domestic sectors including green technologies, medical services and pop culture. Prime Minister Taro Aso announced plans to increase domestic demand by $400 billion in three years and add up two million in new jobs.
- iShares MSCI Japan Index (EWJ): down 5.5% year-to-date
China’s $586 billion stimulus package is likely to boost consumer spending and increase jobs in infrastructure and public works.
- iShares FTSE/Xinhua China 25 Index (FXI): up 17.9% year-to-date
Max Chen contributed to this article.