Why iShares MSCI Korea ETF (EWY) rose 5.39%
iShares MSCI Korea ETF (EWY) rose 5.39% on August 20, 2026 — Trump cuts Korea military exercises, boosts regional.
What happened
Trump ordered the Pentagon to cut back military exercises with South Korea, removing a key source of geopolitical risk premium that has weighed on the Korea index and foreign investor flows.
Why it moved
A calmer security backdrop strengthens the case for foreign institutional money to rotate into Korean equities; lower headline volatility and reduced tail risk support multiple expansion and inflows into broad-based…
Why it matters
Korea Tech theme: The Trump order is the primary driver of the Korea rally, de-risking the region structurally and opening the door for a foreign capital influx that had been on the sidelines due to geopolitical…
What would break the thesis
If the order is reversed, or if North Korea responds with fresh missile tests, the security backdrop deteriorates and foreign inflows reverse course.