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Last week, indices around the globe showed a more positive trend with only India being negative.

South Korea (EWY) has been dominating our trend table with the highest trend score in the past few weeks and the momentum continues to look strong. Optimism that Chinese demand for the country’s exports will not be affected by monetary tightening in China has fed positive sentiment in the Korean equity market. Exports to China made up 20% of Korean total shipments abroad last year and the trend is expected to continue this year.

That said, investors need to consider two major risk factors that could potentially derail the country's economic recovery. Similar to what is happening in other parts of developing Asia, fast growing food price inflation has prompted the central bank to be more aggressive in addressing inflationary pressures. Uncertainties over geopolitical security woes could also post a thread to the economy and its trading partners.

Spain (EWP) rebounded last week on easing concerns over the country’s debt situation. A bigger euro-zone bailout fund is possible which has helped shore up investor confidence. It is interesting to note that the debt crisis has not bled into the stock market to the degree it had when the crisis first took place a year ago.

We will see if the upward trends of the international ETFs continue early in 2011 -- this data can be regularly reviewed at the 360 Degree Market View.

Assets Class

Symbols

01/14
Trend
Score

01/07
Trend
Score

Direction

South Korea

EWY

17.36%

14.68%

^

Russia

RSX

17.2%

12.13%

^

Malaysia

EWM

14.9%

14.1%

^

Taiwan

EWT

14.79%

9.18%

^

Hong Kong

EWH

13.9%

12.67%

^

Mexico

EWW

13.73%

12.99%

^

South Africa

EZA

11.49%

9.64%

^

Canada

EWC

10.3%

7.59%

^

Germany

EWG

9.05%

3.44%

^

Austria

EWO

8.94%

5.66%

^

Singapore

EWS

8.27%

7.83%

^

Japan

EWJ

8.2%

6.93%

^

United Kingdom

EWU

7.68%

4.54%

^

Australia

EWA

6.01%

2.36%

^

Switzerland

EWL

5.89%

4.06%

^

The Netherlands

EWN

5.79%

-1.31%

^

Brazil

EWZ

5.23%

1.27%

^

France

EWQ

5.18%

-2.12%

^

China

FXI

5.11%

1.32%

^

Italy

EWI

3.42%

-5.43%

^

Belgium

EWK

2.59%

-2.03%

^

Spain

EWP

-1.29%

-14.88%

^

India

INP

-1.82%

1.96%

v

*The trend score is based on the following formula: for an ETF or index, we use the average of 1, 4, 13, 26 and 52 week total returns (i.e. dividend and distribution reinvested). We then rank them based on the scores to derive the following trend table (click on each to enlarge). Notice the average of the total returns would overweight the recent price movement. This is similar to exponential moving average.



Source: South Korea Continues to Shine Among Single Country ETFs