Franklin FTSE South Korea ETF

FLKR

Market cap $1.11B

Earnings are the principal driver behind the breathtaking rallies achieved by Korean and Taiwanese benchmark indices in 2026, and Goldman Sachs thinks the market is still underestimating the longevity of the chip cycle.

Asian equities fell on Tuesday as doubts over a Middle East ceasefire weighed on risk appetite, offsetting optimism around artificial intelligence funding and potential listings. MSCI's Asia-Pacific index excluding Japan slipped 0.6% after a volatile open.

The benchmark consumer-price index rose 3.1% from a year earlier in May, reflecting the effects of higher oil prices amid Middle East tensions and the won's weakness against the U.S. dollar.

Matthews Asia's Sean Taylor explains why he remains constructive on China despite the broader indexes lagging some high-performing sectors. He also outlines his South Korea strategy, including an overweight call on chipmakers balanced by exposure to industrials.

Peter Kim, global investment strategist at KB Financial Group, says from a valuations and fundamentals perspective, we are "not even halfway through" the rally in South Korea's semiconductor and memory giants Samsung and SK Hynix. He also discusses the net-selling of the KOSPI index by foreign institutional investors, and the potential risks of labor unions action in the two companies.

South Korean tech firm Kakao Corp said ​it has failed to reach a pay deal ‌with its union after second-round negotiations mediated by the government on Wednesday.

South Korea's central bank held rates steady at its first meeting under Gov. Shin Hyun-song, but kept the door open to policy tightening as it forecast higher growth and inflation.

Call it a K-pop.

South Korea is emerging as one of the strongest AI plays outside the United States. Semiconductor strength & AI optimism are driving KOSPI and South Korea ETFs.

Japan's Nikkei 225 climbed to a record high on Wednesday, as a rally in semiconductor shares outweighed weakness in banks and real estate stocks. The benchmark index rose 1.25% to 65,811.78 as of 0147 GMT, after touching an intraday high of 66,428.81.