Aashika Suresh
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The iShares MSCI South Korea ETF has surged more than 97% year-to-date, while the iShares MSCI Taiwan ETF (EWT) has gained about 83%.
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The WisdomTree Trust – WisdomTree Japan Hedged Equity Fund (DXJ) has gained 27%, and the iShares Core MSCI Emerging Markets ETF (IEMG) has risen 23.5% so far in 2026.
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Meanwhile, SPY, QQQ, and DIA have gained 13.75%, 22.44%, and 7.52%, respectively.
U.S. equity markets have had a strong run in 2026 so far, but international markets, including those in Asia and emerging markets, have surged past domestic returns.
While the SPDR S&P 500 ETF (SPY), the SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Invesco QQQ Trust (QQQ) have all posted gains so far this year, exchange-traded funds linked to South Korea, Taiwan, Japan and other emerging markets have surged past U.S. gains.
SPY, QQQ, and DIA have posted gains of 13.75%, 22.44%, and 7.52%, respectively.
Meanwhile, the iShares MSCI South Korea ETF (EWY), which tracks large- and mid-cap equities in South Korea, has surged more than 97% year-to-date. Meanwhile, the iShares MSCI Taiwan ETF (EWT) has gained about 83%.
The WisdomTree Trust – WisdomTree Japan Hedged Equity Fund (DXJ), which invests in dividend-paying Japanese stocks, has gained 27% over the same period, while iShares Core MSCI Emerging Markets ETF (IEMG), which invests in stocks across global emerging economies including Brazil, China, and India, has risen 23.5%.
What’s Driving Asian And Emerging Equities Higher?
An artificial intelligence boom, varied macroeconomic policies, and a volatile foreign exchange market have contributed to gains in markets outside the U.S.
In South Korea, the AI-driven High Bandwidth Memory boom has strengthened shares of Samsung and SK Hynix, while corporate-governance reforms have also contributed to a broader market re-rating and boosted equities.
In Taiwan, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading dedicated semiconductor foundry, has seen record revenues and earnings amid the AI boom, contributing significantly to the market’s strong performance.
Meanwhile, Japan’s corporate governance reforms, rising buybacks and dividends, and improving profitability have driven shares higher, even as the DXJ’s yen hedge has helped it gain momentum.
Emerging Markets have benefited largely from the chip boom in South Korea and Taiwan, while a weaker dollar at the start of the year and political uncertainty in America also gave them an advantage over U.S. equities.
