iShares MSCI South Korea ETF

According to KGI, Apple Watch (AAPL) sales will fall more than 25% in 2016. KGI forecasts sales of 7.5 million units in 2016 compared to estimated sales of 10.6 million units in 2015.

The OCTG segment has been hit hard by lower demand and higher inventory. This would put pressure on U.S. Steel (X) and Nucor’s (NUE) tubular operations.

Japan’s economy versus the U.S. economy The below graph reflects trends in Japan’s gross domestic product (GDP) measured in U.S. dollars as of 2005 and 2013. Japan’s Gross Domestic Product (GDP) in 2012 was approximately $6 trillion USD, versus the U.S. GDP of approximately $16 trillion USD (so Japan’s economy is approximately 38% the size […]

Taiwan’s economy came out of the recessionary phase. The GDP for 2Q16 grew by 0.69%—compared to a contraction of 0.68% in the previous quarter.

Qualcomm’s (QCOM) business practices have come under regulatory scrutiny in various countries including China, South Korea (EWY), Europe, and the United States.

Japan’s import and export dynamics The below graph provides a clearer picture of the import and export dynamics of the Japanese economy. By using 2005 as a base year and adjusting for inflation or deflation, the graph shows how exports and imports have changed on a “real” basis, as opposed to a “nominal” basis. Viewing […]

Malaysia’s trade surplus jumped to 9.9 billion Malaysian ringgit (MYR) (about $2.3 billion as of August 11, 2017) in June 2017—an 80% rise YoY.

China’s export growth declines The below graph reflects an apparent decline in the rate at which Chinese exports and imports have been growing. The red line reflects the rate at which exports exceed imports (trade surplus). Though growth rates in trade declined in the wake of the year 2000’s dot com bubble and the 9/11 […]

This series explains why Japan’s investment decline happened and what might happen in the future under “Abenomics.”

A change in yen appreciation? The below graph reflects a potential big change in Japan post-2012—has yen appreciation turned the corner as a result of post-2012 “Abenomics“? In the mid 1970’s, the U.S. dollar bought 300 yen, and by the mid-1980’s, the U.S. dollar bought 250 yen. By the end of the 1980s, the dollar […]

Japan’s fixed capital formation The below graph reflects the ongoing decline in fixed capital formation in Japan. Since Japan’s bubble economy burst in 1990, investments have been in a long-term phase of winding down. However, there has been a slight, though potentially ominous bounce recently. This article examines the trend in capital formation in Japan […]

Hewlett-Packard’s (HPQ) revenue from its Printing segment fell 16% YoY (year-over-year) to $4.6 billion in fiscal 2Q16.

South Korea’s (EWY) stock market soared to a new high recently, posting large gains across the Asia-Pacific region (VPL)(EPP). In this series, we’ll discuss what we can expect from South Korea for the rest of the year.

Interbank lending rates The below graph reflects the effects of the China Central Bank’s monetary tightening policies on interbank lending rates. The interbank seven-day lending rate spiked in June. Rates on government bonds have also risen, with the three-month yield on Chinese bills rising from 2.65% to 3.50%, and the ten-year bond yield rising from […]

Lam Research (LRCX) was among the first semiconductor companies to release its fiscal 3Q18 earnings for the quarter that ended on March 25.

Two business strategies that Micron can use to beat competition include innovating processes that reduce costs and developing next-generation products.

A few iPhone models face the risk of an import ban under Apple’s ongoing patent infringement lawsuit with Qualcomm and South Korea.

What can the policies of Japan’s new Prime Minister provide in order to convince consumers to spend more and grow the overall economy? Prime Minister Abe has some fairly radical ideas.

In 2013, when the Fed announced that it would gradually end its QE (quantitative easing) program, many emerging markets (ABE)(FEO) saw huge outflows of funds.

South Korea’s KOSPI remained in the green on May 15. The index gained 0.53% on the day to end at 2,092.78.

Apple has acknowledged that Qualcomm should be paid for its SEP (standard essential patent), but it argues that the latter is charging an unreasonably high price for the license.

Thanks to “Abenomics” and a weaker yen, Japanese equities have risen and have also outperformed both U.S. and E.U. equities and avoided the fate of Chinese, Korean, and emerging market shares.

Residential investments in Japan The below graph reflects the ongoing decline in the rate at which residential investments are being made in Japan. As with other forms of fixed investment noted earlier in this series, Japan has seen a long-term decline in the housing market since the peak of the economic bubble, which was accompanied […]

The strength of Japanese equities The below graph reflects the strong performance of Japanese equities over Chinese and Korean equities since the election of Japan’s new Prime Minister, Shinzo Abe, in November last year. Hopes of ending deflation in Japan have led to a strong performance in Japanese markets, while Japan’s neighbors, China and Korea, […]

The importance of capital formation The below graph reflects the historical dynamics of capital formation—the percentage amount of gross domestic product, or GDP, at which capital is invested—in the United States, Japan, and China. As the graph reflects, China exhibits a tremendous level of investment as a percentage of GDP relative to the more mature […]

There are a plethora of options for investing in South Korea equities via ETFs.

Taiwan’s economy rose by 0.7% on an annual basis in 2Q16—compared to a contraction of 0.29% in the previous quarter and slightly above estimated forecasts.

Major equity indices The below graph reflects the relative performance of major equity indices since the year 2000. The economic growth histories of China and Korea have contributed to superior performance over the US and Japanese equity markets over this timeframe. However, the below graph reflects how sensitive Chinese and Korean markets are to US […]

Chinese yuan appreciation The Chinese yuan has appreciated approximately 3% per year since the launch of exchange rate reform in 2005, appreciating from 8.25 to 6.15 versus the U.S. dollar. The Chinese Central Bank “pegs” its exchange rate to the U.S. dollar—though it has allowed its currency to appreciate against the U.S. dollar more aggressively […]

GDP in the United States and European Union The below graph reflects ongoing trends in the gross domestic product (GDP) growth rates in the United States and European Union, major destinations of Chinese exports. With slow economic growth in the United States, and the EU gross domestic product finally hitting positive territory (+ 0.3%) after […]

For Baidu, Apple, and Google China, the improvement in the domestic consumption area has been encouraging, though construction and manufacturing still aren’t firing on all eight cylinders.

Fixed asset investment in China The below graph reflects the significant decline in fixed asset investment as a percentage of GDP as well as the significant decline in the growth rate of real estate–related construction and investment. As noted in the prior article, since 1996, overall construction in China has seen five boom and decline […]

Overall, emerging markets have debt levels relative to both gross domestic product and income that are still considerably lower than those of developed markets.

Like the USA, Japan is once again seeing record corporate profit levels. Plus, fixed asset investment reflects a very large recovery since the new Prime Minister was elected at the end of 2012.

Most major emerging economies are engaging in various forms of multi-year reform programs in hopes of making their growth less volatile and their financial systems more stable.

This article considers the inter-temporal cost/benefit of importing oil with a weakening currency versus exporting merchandise such as vehicles for Japan.

The Nikkei index stands at approximately 15,000—roughly 6.0% off its December 31, 2013, close, though still below its pre-2008 crisis peak of closer to 18,000.

This article considers the prospects for further real GDP growth acceleration and the implications for Japanese exporters like Toyota.

The Japanese ETFs—DXJ and EWJ—performed very well. Meanwhile, both Korean and Chinese ETFs—EWY and FXI—have been flat, with China still in slightly negative territory.

This article considers the recovery in Japan’s investment data and the implications for domestic exporters such as Toyota.

Wages in China are simply growing much faster than the overall economy, which fuels inflation and real estate bubbles when banks are willing lenders.

As the Japanese yen continues to weaken, and exports begin to grow, Japan will see better market data in the future.

Both the Korean and Chinese ETFs, EWY and FXI, have been flat, with China still in slightly negative territory and the worst performer to date.

This series examines the associated consumption growth trends in China, and considers the implications for Chinese companies like Baidu.

This series examines the key economic indicators in the Bank of Japan’s “beige book,” as we call it in the USA in the case of our Federal Reserve Bank.

Lam Research (LRCX) expects its shipments to fall $100 million sequentially to $3 billion in the June quarter.

Hong Kong’s Hang Seng Index recovered today after five straight losses.

Australia’s S&P ASX 200 was the best-performing index in the Asia-Pacific region on July 3. The index gained 0.59% on the day to end near its 12-year high at 6,685.5.

Australia’s ASX200 lost marginally today. Although the index was trading higher until noon, it erased those gains afterward. 70 stocks gained, while 118 fell. BHP Group (BHP) outperformed the index with marginal gains, while Rio Tinto (RIO) gained 0.64%.

Australia’s ASX200 recovered today after a loss on Friday. After losing 0.55% on Friday, the index rose 0.22% today. Out of 200 stocks in the index, 83 advanced, while 103 retreated. 14 stayed unchanged today. BHP Group (BHP) and Rio Tinto (RIO) were among the gainers, while News Corp (NWSA) lost 1.29% on the Australian Stock Exchange today.

Hong Kong’s Hang Seng Index followed China’s lead today.

South Korea’s KOSPI continued to fall for the second straight day on May 17. The index, which fell 1.2% on May 16, extended its losses by another 0.58%.

Applied Materials (AMAT) supplies SME (semiconductor manufacturing equipment) to chip makers all over the world.

Whereas China (FXI) is the largest consumer of semiconductors in the world, it meets most of its needs through semiconductor imports.

As we observed in the previous part of this series, Wall Street analysts expect a revenue decline of 27% YoY (year-over-year) for BlackBerry (BB) in fiscal 4Q18 with revenue of $216.8 million.

EA’s FIFA franchise remains one of the leading games worldwide. It has approximately 42 million players on console platforms PlayStation (SNE) and Xbox (MSFT).

The sharp rise and fall in the price of bitcoin are mainly because ownership of the currency is heavily concentrated in just a few hands.

About $200 billion was wiped off the total market capitalization of the cryptocurrency market due to the recent fall in cryptocurrency prices.

Stock markets around the world rallied in 2017. Asian equities, in particular, grabbed investors’ attention in 2017, as they have been outperforming other markets.

Over the past two years, Qualcomm has paid ~$2.7 billion in fines to regulators in China and South Korea and is now facing a $774-million fine from Taiwan.

Apple (APPL) withheld $1 billion in royalty payments to Qualcomm (QCOM) in fiscal 3Q17, which slashed $1 billion directly from Qualcomm’s profits.

Among the 35 OECD countries, the US has the highest corporate tax rate of 35%. This tax rate puts US companies at a disadvantage compared to their foreign rivals.

Samsung (SSNLF) shipped 311.4 million smartphones in 2016, a fall of 3% year-over-year compared to shipments of 320.9 million units in 2015. Samsung is the world’s leading smartphone manufacturer.

In this series, we’ll look at Micron’s end markets and its investments in each of these end markets.

Applied Materials’ revenues rose 45% year-over-year to $3.5 billion in fiscal 2Q17, as its foundry and display equipment sales rose in triple digits.

Manufacturing activity in July 2017 South Korean (EWY) manufacturing activity dropped in the July 2017, with a sharp reduction in output. The Nikkei South Korea (EEM) manufacturing PMI decreased to 49.1 from 50.1 in June, according to an IHS Markit report. Manufacturing activity in South Korea returned to contraction, with reduced orders for its key export markets, […]

Exports from Indonesia (EIDO) in June 2017 stood at $11.6 billion, a fall of 11.8% on a year-over-year basis and 19% on a month-over-month basis.

Business confidence in the manufacturing sector in South Korea (EWY) has remained stable at 78 in July 2017.

The South Korean (EWY) Manufacturing PMI (Purchasing Managers’ Index) rose to 50.1 in June 2017 compared to 49.2 in May 2017.

South Korea’s (EWY) consumer confidence continued to remain steady at 111.2 in July 2017 compared to 111.1 in the previous month.

South Korean equities are soaring in 2017, with the Korea Composite Stock Price Index (or KOSPI), its benchmark index, reaching an all-time high of 2,451.5 in July 2017.

Under Kim Jong-Un, North Korea has adopted a more aggressive stance toward its regional adversaries, fueling unprecedented tension in the region.

While the weak global economic recovery has weighed heavily on Asian exports, domestic weakness has also played a role in the region’s economic slowdown.

China’s (FXI) imports rose to $153.8 billion in June 2017, a 17.2% rise year-over-year (or YoY) and a 2% rise month-over-month.

Chinese (FXI) exports stood at $196.6 billion in June 2017, a rise of 11.3% year-over-year basis and a rise of 8.7% month-over-month.

Apple (AAPL) had a market share of 14.9% in the global Smartphone market at the end of 1Q17. Apple’s market share in 1Q16 was 15.4%.

After a year of contraction, the Nikkei South Korea (EWY) Manufacturing PMI increased to 50.1 in June 2017 compared to 49.2 in May.

Several external factors are expected to impact Indonesia’s economy in 2017. The US government’s protectionist stance is expected to influence global trade.

Manufacturing PMI for South Korea (EWY) fell to 49.2 in May 2017 as compared to 49.4 in April 2017.

South Korea’s trade surplus saw a large drop to $6.0 billion in May 2017 as compared to $13.0 billion in the previous month.

South Korea, Asia’s (AAXJ) fourth-largest economy, posted a decline in its unemployment rate to 3.6% in May 2017 as compared to 4% in April of 2017.

South Korea’s (EWY) inflation rate rose to 2% in May 2017 as compared 1.9% in the previous month.

South Korean (EWY) stocks continued to surge in June 2017, gaining about 2% as of June 29.

Manufacturing activity in South Korea Although South Korea’s (EWY) manufacturing activity increased in April 2017, its pace of growth slowed amid tensions with its important trading partner, China (FXI). Currently, relations between China (MCHI) and South Korea (KOR) are under pressure due to the United States’ deployment of the THAAD (Terminal High Altitude Area Defense) […]

A higher allocation to Asia could certainly provide diversification benefits to investors while enhancing their risk-adjusted returns.

South Korea’s economy in 2017 Asia’s (VPL) (EPP) fourth-largest economy, South Korea’s (EWY), showed some moderate signs of recovery in 1Q17. Improved global (ACWI) (VT) economic conditions have boosted the country’s exports and investments in the last two quarters. South Korea’s central bank has kept the key interest rate steady, and inflation has remained close […]

The EAFE Index provides exposure to slow-growing developed markets while disregarding Asia’s fast-growing markets (FXI) (INDA).

Consumer confidence in South Korea South Korea’s (EWY) newly elected president aims to bring about economic and structural reforms. Consumer confidence in South Korea (DBKO) has jumped to the highest level in last three years. Let’s look at consumer confidence in South Korea over the last year. Rising consumer confidence in South Korea South Korea’s […]

Although American investors have focused on domestic markets in the past, investors seeking long-term capital appreciation need to focus on Asia as well.

For the last three decades, Asia has posted higher economic growth than any other region of the world.

In April 2017, a binding arbitration ruling had Qualcomm pay BlackBerry (BBRY) $815 million plus interest and attorneys’ fees over licensing disputes.

Qualcomm (QCOM) has been and continues to be the preferred choice of dividend-seeking investors because of its strong balance sheet and rich cash flows.

In fiscal 1Q17, Qualcomm’s (QCOM) operating cash flow fell 50% year-over-year to $1.4 billion.

Qualcomm (QCOM) is a cash-rich company with $30 billion of cash reserves, $7.4 billion of annual operating cash flows, and $18.9 billion of net cash balance.

In December 2016, the KFTC (Korea Fair Trade Commission) imposed a fine of $853 million on Qualcomm as it found the chip supplier’s licensing practices to be monopolistic.

Smartphone shipments to grow The iPhone, Apple’s (AAPL) flagship product, accounts for approximately 58% of the company’s total revenue. Any impact on revenue in this segment could significantly impact overall revenue. Research company IDC (International Data Corporation) estimates that global smartphone shipment growth slowed to less than 1% in 2016, compared with ~10% in 2015, […]

According to the 2015 trade statistics, China exported $483 billion worth of goods to the US, while the US exported just $116 billion worth of goods to China.

Net sales in the Nokia Technologies segment rose 109.0% YoY, driven by Nokia’s expanded licensing agreement with Samsung.

Fitbit has increased its revenue significantly over the last five years. The company’s revenue rose from $76 million in 2012 to $745 million in 2014 and $1.9 billion in 2015.

South Korea’s monetary policy committee kept the benchmark interest rate unchanged at a record low of 1.3%—in line with expectations.