iShares MSCI Emerging Markets Asia ETF

EEMA

Market cap $1.53B

The dollar selloff is helping developing countries' stocks.

Among APAC equity markets, Australia has a higher beta to oil prices while India, Indonesia and Thailand have lower betas. Domestic political uncertainties have been one main reason for the decoupling trend seen in Indonesia and Thailand.

Even with the world on edge, with rising geopolitical tensions, uncertain interest rate moves and tech stocks showing some mood swings, ETF investors aren't running scared. They're doing something smarter: diversifying their bets.

Now that inflation is making its way back into the economy, the yield curve will be one indicator that investors need to watch out for. The yield curve is made up of the 10-year bond yields minus the two-year bond yields, and a steepening curve means that 10-year yields rise faster than the two-year yields.

For investors seeking momentum, iShares MSCI Emerging Markets Asia ETF EEMA is probably on the radar. The fund just hit a 52-week high and is up 24.42% from its 52-week low price of $60.36/share.

Courtney Garcia, Payne Capital Management senior wealth advisor, joins 'Power Lunch' to discuss finding opportunities in emerging markets.

While the China macro story of ongoing transition is a headwind to the rest of Asia, there is more to the region's economic health than this.

The total nominal GDP of the ten ASEAN nations measured in US dollar terms amounted to USD 3.6 trillion in 2022, more than doubling compared with total GDP of USD 1.6 trillion in 2009. Singapore's GDP growth rate improved to a pace of 2.8% y/y in the fourth quarter of 2023 according to the advance estimate of GDP from the Ministry of Trade and Industry (MTI).

With moderating inflation levels in most Asian countries and great growth potential in the medium to long term, investing in Emerging Asian countries can prove beneficial.