South Korean and Taiwanese exports are often considered leading indicators of global trade.
For the chart above, we chose a narrower focus – shipments of South Korean electronic components – and tracked the year-over-year change compared to the Nasdaq 12-month returns.
As you can see from the chart, there is a strong correlation between the two variables. The recent decline in shipments, down about 18% year-over-year, was accompanied by a drop in the Nasdaq index.
Do you follow supply in the microelectronics market?