World Markets Update: May 27, 2025

Global market performance through May 27, 2025, reveals that eight of the nine indexes tracked have posted year-to-date gains, led by Hong Kong’s Hang Seng (up 19.15%) and Germany’s DAXK (up 18.12%); however, Japan’s Nikkei 225 has declined 5.44% over the same period. A comparison of these indexes since the 2008 financial crisis and more recent periods shows varying degrees of recovery and growth, with different indexes reaching their lows at different times. Investors can gain exposure to single countries through ETFs like WisdomTree Japan Hedged Equity Fund (DXJ) and KraneShares CSI China Internet ETF (KWEB).

Analysis

Global equity markets have exhibited widespread positive performance year-to-date through May 27, 2025, with eight of the nine prominent international indexes tracked posting gains. Hong Kong’s Hang Seng has been the standout performer, achieving a 19.15% year-to-date increase, followed by Germany’s DAXK with a substantial 18.12% gain. England’s FTSE 100 also recorded a respectable 6.27% rise. Conversely, Japan’s Nikkei 225 has lagged significantly, marking a 5.44% loss for the year, positioning it as the sole decliner among the watched indexes. The analysis provides comparative performance charts, including perspectives since the March 2009 lows and the October 2007 market peaks, offering a longer-term view of relative market recoveries and growth trajectories. It is noted that Germany's DAXK, a price-only index, is used for consistent comparison with other indexes that do not include dividends. The overall market sentiment is moderately positive, reflecting the general upward trend across most global indices.

Key Decisions for Investors

• Given the Hang Seng's 19.15% YTD gain supported by strong ETF sentiment (e.g., EWH at 0.9) and Germany's DAXK 18.12% YTD rise with positive associated ETF sentiment (e.g., DAX at 0.8), investors could consider increasing allocations to these outperforming markets.