Daily Movers: South Korea EWY Sank 8.5%

A sharp growth unwind defined Monday’s cross-asset market, led by South Korea EWY’s 8.45% slide. Taiwan EWT fell 4.06%, Semiconductors SMH dropped 4.16%, Clean Energy ICLN lost 3.25%, and Emerging Markets Bond EMB declined 0.64%. Energy XLE rose 3.01%, Managed Futures DBMF added 0.62%, Real Estate VNQ gained 0.52%, and Utilities XLU edged up 0.68%.

Equity: Defensives led, North Asia weakness deepened

Movers

Leaders: Energy XLE +3.01% (3M: +0.4%), Utilities XLU +0.68% (3M: -2.0%)

Laggards: South Korea EWY -8.45% (3M: +21.1%), Taiwan EWT -4.06% (3M: +32.4%)

3M Leaderboard

Strong: Taiwan EWT +32.4%, Value Factor VLUE +27.8%, Technology XLK +27.3%

Weak: Brazil EWZ -13.6%, Copper Miners COPX -10.7%, China MCHI -7.5%

Fixed Income: Defensive income held up, credit-sensitive yield lagged

Movers

Leaders: Short TIPS VTIP -0.06% (3M: +0.5%), Muni Bonds MUB -0.10% (3M: +0.9%)

Laggards: EM Sovereign Bonds EMB -0.64% (3M: +1.1%), Preferred Stock PFF -0.62% (3M: -0.1%)

3M Leaderboard (within FI scale)

Strong: EM Sovereign Bonds EMB +1.1%, High Yield Bonds JNK +1.1%, High Yield HYG +0.9%

Weak: Long Treasuries TLT -1.8%, 7-10yr Treasuries IEF -1.1%, Investment Grade Credit LQD -0.9%

Specialty: Diversifiers and real estate led, growth themes lagged

Movers

Leaders: Managed Futures DBMF +0.62% (3M: +2.7%), Real Estate VNQ +0.52% (3M: +6.1%)

Laggards: Semiconductors SMH -4.16% (3M: +34.0%), Clean Energy ICLN -3.25% (3M: -1.3%)

3M Leaderboard

Strong: Semiconductors SMH +34.1%, Momentum Factor MTUM +19.6%, Biotechnology IBB +11.9%

Weak: Gold Miners GDX -26.2%, Ethereum Trust ETHA -21.6%, Gold GLD -16.0%

Cross-Asset Read

A sharp growth unwind framed Monday across equities, credit, and specialty assets. The 3M leadership concentrates in growth, with EWT at +32.4%, XLK at +27.3%, and SMH at +34.1%; Monday broke that standing leadership in EWT and SMH, while VNQ extended its +6.1% 3M advance. Volatility compression sits in developed-market equities and core rates, with EFA, EFAV, EWG, AGG, BNDX, EMB, and DBMF all compressed; the cross-asset regime is selective, with pressure centered in prior growth leaders rather than in the full field.

Romain Gandon
CEO, Quantlake

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Past performance is not indicative of future results.