First Trust Asia Pacific ex-Japan AlphaDEX Fund

FPA

Market cap $108M

A weakening greenback is being compounded by global de-dollarization and lower interest rates, creating an environment for emerging markets (EM) ETFs to prosper. In turn, more investors are flocking into EM equities, but for more targeted exposure, South Korea could present an intriguing alternative.

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.

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).