NHNCF - Divergence Between Taiwan And Korea Equity - The Global Growth Bellwethers?

2024-07-17 05:20:00 ET

Summary

• Korea and Taiwan are traditionally often viewed as bellwethers for global trade outlook, given their export-oriented characteristics and their critical roles in the global tech supply chain.
• Given the explosive AI-driven tech upcycle since 2023, the tech industries in the two economies have benefited as a result.
• In the past one year, FTSE Taiwan saw a total return of 40% with Tech up 89% while FTSE Korea increased only 10% despite a 38% increase in Tech.

By Belle Chang

Korea and Taiwan are traditionally often viewed as bellwethers for global trade outlook, given their export-oriented characteristics and their critical roles in the global tech supply chain. Among APAC equity markets, Taiwan and Korea are the markets with the heaviest weights in Technology.

Korea's and Taiwan's equity markets historically moved closely together. However, in the past one year, Taiwan has outperformed Korea in equity significantly. Why are they behaving differently this time? ...

For further details see: