Interestingly, South Korea announced its strongest economic growth since 2021 at a better-than-expected 3.6% y-o-y for 1Q2026, driven by strong net exports (1.1 ppts) and a solid contribution from domestic demand (0.6 ppts).
No surprise then that the Taiwan Stock Exchange Weighted Index (TWSE or TAIEX) ranks among the best performing markets this year, up 34% this year, and up 87% y-o-y as at Apr 30.
One way to access the Taiwanese market is through iShares MSCI Taiwan ETF (EWT), an exchange-traded fund incorporated in the US. The ETF's objective seeks to provide investment results that correspond to the performance of the Taiwanese market, as measured by the MSCI Taiwan 25/50 Index. The heaviest weightings in EWT are TSMC, MediaTek, Hon Hai Precision Industry (Foxcon), Delta Electronics and ASE.
See also: As interest moves to semiconductor value chain stocks, the STI continues consolidation
Similarly, iShares MSCI South Korea ETF is also incorporated in the US. The ETF tracks the performance of the MSCI Korea 25-50 USD Index. The fund holds companies such as Samsung and SK Hynix, which carry a heavy weightage in the ETF.
The two ETFs are readily available on platforms such as Moomoo, Interactive Brokers and the like. Of note, though, are the risks associated with these ETFs. As with all ETFs, investors and traders bear the cost of modest expense ratios. The ETFs are traded in USD so be prepared for currency risk for investors whose home currency is SGD.
See also: Brent crude may break its support as STI attempts an upside breakout
The Taiwan and Korean markets and economy are - at present - in a virtuous cycle. Demand for AI infrastructure underpins the companies in these markets, their prices rise, the stock market’s uptrend creates wealth - as evidenced by the bullishness at DBS’s results briefing. The increased wealth fuels consumer spending, which in turn underpins economic growth - and benefits DBS. Oil prices continue to rise due to the volatility and missteps of the Trump administration, and both economies are net energy importers that rely on liquefied natural gas (LNG).
In contrast, the Straits Times Index continues to consolidate as indicators weaken. Although the index lost only 20 points week-on-week to end at 4,912, the move caused quarterly momentum to fall below its equilibrium line. 21-day RSI managed a rebound but ADX continues to fall and the DIs have turned mildly negative. In addition, the STI is below its 50-day moving average, currently at 4,934. The 200-day moving average is at 4,608. Support for the index appears at around 4,700.
