Early 2026 is shaping up as a stock-picker’s market, with investors increasingly rewarding countries where inflation is peaking, policy clarity is improving, or growth drivers are strengthening.
• iShares MSCI Japan Index Fund stock is approaching key resistance levels. Why is EWJ stock breaking out?
The MSCI World Index has gained 2.4% year-to-date, after steadily climbing almost 19% in 2025. The iShares MSCI ACWI ex US ETF (NASDAQ:ACWX) is up 5.2% YTD, compared with a 1.6% gain for the SPDR S&P 500 ETF Trust (NYSE:SPY). Emerging markets have been especially strong, with ETFs such as the iShares MSCI Emerging Markets ETF (NYSE:EEM) rising more than 6.5% YTD.
Against this backdrop, several country-specific ETFs are hovering just shy of their 52-week peaks. Here are a few of them:
iShares MSCI Norway ETF (BATS:ENOR): $31.20 on Jan. 27 vs. 52-week high of $32.76
Global X MSCI Norway ETF (NYSE:NORW): $32.42 vs. 52-week high of $32.59
iShares MSCI Turkey ETF (NASDAQ:TUR): $39.54 vs. 52-week high of $39.95
iShares MSCI South Korea ETF (NYSE:EWY): $121.57 vs. 52-week high of $121.85
iShares MSCI Japan ETF (NYSE:EWJ): $85.53 vs. 52-week high of $85.99
What’s Driving The Markets Across The Globe
The Norwegian stock market has remained supported by stable monetary policies and sound commodity fundamentals. Norges Bank maintained its policy rate at 4% during its last monetary policy decision of 2025, with Morningstar analysts predicting the first rate cut in mid-2026.
The Turkish stock market has started 2026 on a positive note as inflation trends show clearer signs of deceleration. The country’s annual inflation rate declined to 30.89% in December 2025, the lowest since November 2021, and below market expectations, as per Trading Economics. The slowdown has further strengthened market confidence in the central bank’s rate-cutting cycle, thus contributing to the revival of investor interest in the Turkish stock market.
The South Korean rally has been led primarily by a strong semiconductor rebound. The KOSPI has risen to record levels, closing above 5,000 points for the first time on Tuesday, due to the surge in AI chip sales, strong export numbers in December, and hopes for next-generation HBM memory chips, according to Business Korea. The earnings trajectory of chipmakers remains a strong foundation for market confidence in the early part of the year.
Japanese stocks have risen on the back of political and macro-related tailwinds. Japanese Prime Minister Sanae Takaichi dissolved the lower house of parliament on Jan. 23, clearing the way for a snap election on Feb. 8 as she looks to ride the wave of high public approval ratings. Plans for bold fiscal policies, including increased military outlays and possible tax cuts, have fueled risk-taking sentiment.
In further positive news, the Bank of Japan has upgraded its growth forecast, predicting economic growth of 0.9% for the fiscal year ending March 2026, up from 0.7%, while also increasing its fiscal 2026 growth forecast to 1%.
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