iShares MSCI China Small-Cap ETF Price & Performance (ECNS)

Chinese equities are seeing a resurgence, with the MSCI China Index up 47% year-to-date, driven by government stimulus and AI sector growth. Major ETFs like iShares MSCI China have also delivered strong returns. The momentum highlights increased investor confidence despite ongoing geopolitical tensions and tariff concerns.123

Hong Kong's Hang Seng Index surged to a three-year high, gaining 3.76%, buoyed by Alibaba's strong earnings. Meanwhile, Japan's inflation data showed a 4% rise, its highest since 2023, fueling speculation of further monetary tightening. These regional developments underscore divergent economic trajectories across Asia.453

The Dow and Nasdaq experienced significant declines, with consumer discretionary stocks suffering their worst weekly performance since 2023. Concerns over inflation and tariffs have dampened consumer sentiment, which fell by 9.8% in February. Analysts suggest shifting focus to smaller-cap stocks for potential resilience.645