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When it comes to broad international equities exposure, the sum of the parts is traditionally greater than the whole. Today, however, single-country exposure is also proving that individual parts can deliver a whole lot of performance.
Korea's country ETF booked triple-digit gains while most Asia funds left investors watching from the sidelines, and the same AI hardware boom that drove that run is quietly powering two other markets that rarely show up in the conversation.
The iShares MSCI Thailand ETF which covers 82 Thai stocks has delivered nearly 38% total returns over the past year, outperforming its other ASEAN peers in a big way. THD's heightened exposure to Delta Electronics, an AI hardware play, has worked well, but it also makes it vulnerable to some profit booking, more so due to steep valuations. Thailand's macro outlook is weakening, with GDP growth expected to dip below 2% for the first time in 3 years, while the prospects of the THB don't look great either.
The Bank of Thailand kept interest rates on hold while it reassesses the economic impact of the war in the Middle East as the U.S. and Iran work on a lasting peace deal.
Asian currencies consolidated against the dollar before first decision by a FOMC led by Chairman Kevin Warsh later.
CNBC's Dan Murphy delves into the Middle East's investment flows and provide insights on the global energy hub and the vast amounts of capital originating from the region on Access Middle East (12:00 – 13:00 SIN/HK). Please note this livestream is only available in Europe and India.
iShares MSCI Thailand ETF (NYSEARCA:THD - Get Free Report) was the target of a large increase in short interest in March. As of March 31st, there was short interest totaling 115,891 shares, an increase of 79.4% from the March 15th total of 64,615 shares. Approximately 2.8% of the shares of the company are sold short.
iShares MSCI Thailand ETF offers broad exposure to Thailand's stock market, but has a history of poor performance. Despite ongoing political volatility, THD's valuation appears attractive for contrarian investors, with recent market dips becoming shallower. Uncertainty around key economic policies is receding, with clearer paths emerging for initiatives like the digital wallet and visa reforms.