Anyone that stayed awake to watch the bloodbath that was
Thursday's Asian session, or those that became aware of that sea
of red Thursday morning U.S. time, probably thought today was
going to be a dreadful day for U.S. stocks.
With Asia looking so dismal, it was not unreasonable to expect
it was going to be another dreadful day for the relevant
tracking both Asia's developed and emerging economies. Well, what
folks expected to happen did not and that is a good thing. Look
at these three pleasant ETF surprises from Thursday's U.S.
WisdomTree Japan Hedged Equity Fund (NYSE:
) No, this is not a misprint: The WisdomTree Japan Hedged Equity
Fund gained 0.8 percent Thursday on double the average daily
volume a day after the Nikkei 225 plunged 6.35 percent. Not to be
excluded from the fun, the rival iShares MSCI Japan Index Fund
) climbed almost 2.4 percent on strong volume.
And do not forget about the iShares S&P/Topix 150 Index
gained 2.2 percent a day after Japan's Topix, which the ETF
tracks, lost almost 4.8 percent.
WisdomTree Asia Local Debt Fund (NYSE:
) Two things: First, Thursday was a nice day for some beaten down
corners of the ETF world, but let's not get too carried away
about just one day. Second, it does bear remembering that credit
markets lead equities.
So if Asian stocks fell and the yen spiked overnight, then who
would want to embrace the allegedly toxic combination of emerging
markets debt denominated in local Asian currencies? Someone did
with the actively managed WisdomTree Asia Local Debt Fund on
Thursday as the ETF rose 1.4 percent on above average volume.
Again, it was just one day, but ALD's performance is
noteworthy because it holds bonds denominated in the currencies
of the following countries: South Korea, Malaysia, Indonesia,
Philippines, Thailand, India, China, Hong Kong, Singapore,
Taiwan, Australia and New Zealand. Have fun finding an attractive
currency in that group.
iShares Thailand Investable Market Index Fund (NYSE:
) Falling baht. Thai stocks down 2.1 percent last night. Not
enough to hold THD back on Thursday as the ETF popped 2.8 percent
on heavy volume. THD is in the midst of a multi-week decline that
tops those seen after
after natural disasters and political
. If there is good news it is that all of THD's previous nasty
pullbacks have been followed by lengthy runs higher.
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