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Singapore, Taiwan, Austria: what do they have in common?

All these countries have extremely performant and export-oriented economies.

Singapore - iShares MSCI Singapore Index (EWS)

Singapore has an export-oriented economy, one of the most exposed to the global economy. This city-state does not expect to return to growth until the global economy shows its signs of recovery. Most notably, the full recovery will depend on the economic performances of overseas markets such as the US, China, and Japan. However, once the external trades start to pick up, Singapore's economy is likely to be among the first to rebound.

Taiwan - iShares MSCI Taiwan Index (EWT)

Another heavily trade-dependent economy, it will continue to suffer until global economic recovery takes place. Several economic indicators point to a slight easing of Taiwan's deep economic recession during the second quarter of 2009.

Six of the seven components of the index — export orders, average monthly overtime in industry and services, book-to-bill ratios in the semiconductor machinery industry, monetary aggregate M1B (currency in circulation, current-account and passbook deposits [M1A] plus passbook savings deposits), stock prices, and producers' inventory — showed positive movement. However, the barometer, which uses five colours to measure the health of the economy, continued to flash blue, indicating recession, for the ninth month in a row.

Austria - iShares MSCI Austria Investable Market Index (EWO)

The latest Purchasing Managers' Index (PMI) released by Bank Austria showed a slowing of the downturn in June, and points to a turnaround of Austria's industry most likely in the summer.

Decline in new orders, stocks of finished goods and output lose momentum. Layoffs remain at a high level. Industry poised for stabilization but a clear recovery is not anticipated.

Sources: Economist Intelligence Unit, Bank Austria