EWY Stock Recent News
EWY LATEST HEADLINES
South Korea's exports to mainland China have remained weak during 2023, recording a decline of 9.5% y/y in October. According to latest trade data from South Korea's Ministry of Trade, Industry and Energy, South Korea's merchandise exports showed grew by 5.1% y/y in October 2023.
Korean large caps have outperformed their Asian counterparts this year on the back of tech-driven tailwinds. With generative AI investments showing no sign of slowing down, the iShares MSCI South Korea ETF remains poised to benefit via its two largest holdings. The portfolio is priced at undemanding levels, offering investors many ways to win from here.
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.