EWY Stock Recent News

Morgan Stanley is bullish on equities in Japan, Taiwan and South Korea and suggest an overweight position in developed-market government bonds, including long-dated Treasuries, and the dollar.

Yacktman Asset Management (Trades, Portfolio) disclosed its first-quarter 13F portfolio update, revealing its top trades included a new holding in iShares MSCI South Korea ETF ( EWY , Financial) and boosts to its positions in Pioneer Natural Resources Co. ( PXD , Financial) and Charles Schwab Corp. ( SCHW , Financial). The Austin, Texas-based firm also reduced its holdings of U.S. Bancorp ( USB , Financial) and Weatherford International PLC ( WFRD , Financial).

After posting sluggish growth in Q1 of 2023, the fourth-largest Asian economy barely managed to avoid a recession. With an IMF forecast of 1.5% growth in GDP for 2023, the export sector of South Korea is expected to review this year, providing some relief to the economy.

Many investors brush off unusual options activity, but others like to “follow the flow.

The South Korean economy slowed significantly during the second half of 2022, with GDP contracting by 0.4% quarter-on-quarter (q/q) in the fourth quarter of 2022. South Korea's manufacturing sector remained in contraction territory at the start of 2023, according to latest PMI data from S&P Global, as another contraction in new orders drove output volumes down.

Weakness in the EWY over recent years has seen the PE ratio on the index fall below 10x, which is significantly below its developed market peers. Korea has strong economic fundamentals in terms of its external balance sheet, fiscal position, and savings rates, which arguably should justify a valuation premium for Korean stocks.

iShares MSCI South Korea Capped ETF provides investors exposure to South Korea's semiconductor & technology-focused economy. Local lawmakers are progressively opening the country up to foreign investors in a quest for international capital.

Investors are looking to global markets for growth as the U.S. dollar weakens. The post These Global Markets Are Outperforming U.S. Stocks In 2023 appeared first on Investor's Business Daily.

Investor expectations were buoyed at the beginning of the year with the inauguration of pro-business President Yoon Suk-yeol. By 2026, South Korean battery makers will be operating plants in the U.S., accounting for at least 200-gigawatt hours each year.

EWY invests in South Korean equities. EWY has fallen alongside other global equities over the past year or so.