Global Markets Strong Despite US Subprime Recovery

Who says that global equity markets all move together? While U.S. markets got their sea legs during a lackluster Monday, Asia showed strength and independence. Latin America (ILF) and Europe were down across the board with the pan-European Dow Jones Stoxx 600 index falling 0.4% at 366.02.

It seems that Asia is not overly concerned about the U.S. housing market as Tokyo's 225-issue Nikkei average ended 0.8% higher at 17292.39. Hong Kong's Hang Seng Index closed 1.6% higher at 19442.42. In Tokyo currency trading, the dollar fell to ¥118.18 in late afternoon trading. Australia's S&P/ASX 200 finished 1% higher at 5891.00 and South Korea's Kopsi ended up 1.3% at 1441.33. Singapore's Straits Times Index finished up 1.2% at 3182.68 and Taiwan's Weighted Price Index closed 0.8% higher at 7629.15. To top off the welcome news for still jittery Asian investors, China's Shanghai Composite Index ended 0.6% higher at 2954.91.

Some of the exchange-traded funds that track these indexes led the day with the iShares MSCI Australia Index (EWA) was up 2.56%, the iShares MSCI South Korea Index (EWY) was up 2.03% and the iShares MSCI South Korea Index (PGJ) finished the day up 2.02% though still down 3.4% so far this year. Although, with all the talk about the weak subprime mortgage sector, it is no surprise to fund the iShares Dow Jones US Home Construction (ITB) as the weakest ETF of the day down 3.23%.