An exchange traded fund investing in Hong Kong markets saw its biggest percentage jump in months on Thursday, and could benefit from continued low rates in the U.S., some analysts say.

The iShares MSCI Hong Kong (NYSEArca: EWH) gained 3.4% on Thursday.

Exporters and raw materials producers in Hong Kong are poised to gain from low rates in the U.S. as the Federal Reserve is keeping the benchmark interest rate at a record low for two years, reports Kana Nishizawa for Bloomberg.

“The Fed’s statement is positive news for the market in the short term, as the Hong Kong market will be flooded with liquidity,” said Danny Yan, portfolio manager at Haitong International Asset Management, in the report. “But there is no catalyst to break the years’ high, and the market will be volatile in the medium term.” [China ETFs in Focus After Weak Manufacturing Data]

The HSI Volatility Index, a benchmark for Hong Kong stock options, was down 5.6% on Thursday, giving options traders the expectation for a swing in the Hang Seng Index of about 12% over the next month, according to a report.[Hong Kong ETF: Hoppy New Year?]

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