Here we see 2008-to-date international equity returns for the ETFs representing Japan (EWJ); Hong Kong (EWH); China (FXI); Singapore (EWS); Australia (EWA); Taiwan (EWT); U.S. (SPY); and EuroStoxx (FEZ).
Asian weakness has been on a par with weakness in the U.S. and Europe. What is noteworthy is the degree to which we're seeing negative returns worldwide, including the markets hot in 2007 (Hong Kong, China). Also interesting is that the market that underperformed in 2007 (Japan) is now displaying a bit of relative strength. (Note also recent yen strength).
Should we be looking at global recession--not just slowdown in the U.S.--the implications would be significant for economies (and markets) dependent upon exports and commodity inflation.
RELEVANT POST:
World Equity Returns for 2008
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