If you've been paying attention to global markets lately, you might notice something interesting: 2026 is shaping up to be the kind of year where geography matters. Investors are getting selective, pouring money into countries where the story is getting clearer—whether that's inflation finally peaking, central banks signaling a path forward, or growth drivers actually materializing.
The numbers back this up. The MSCI World Index has gained 2.4% year-to-date after climbing nearly 19% throughout 2025. But here's where it gets more interesting: international stocks are outperforming their American counterparts. The iShares MSCI ACWI ex US ETF (ACWX) is up 5.2% so far this year, compared with just a 1.6% gain for the SPDR S&P 500 ETF Trust (SPY). Emerging markets have been especially hot, with the iShares MSCI Emerging Markets ETF (EEM) rising more than 6.5% year-to-date.
Against this backdrop, several country-specific ETFs are hovering tantalizingly close to their 52-week peaks. Let's look at who's running hot and why.
The Contenders Near Their Highs
iShares MSCI Norway ETF (ENOR): $31.20 on Jan. 27 versus a 52-week high of $32.76
Global X MSCI Norway ETF (NORW): $32.42 versus a 52-week high of $32.59
iShares MSCI Turkey ETF (TUR): $39.54 versus a 52-week high of $39.95
iShares MSCI South Korea ETF (EWY): $121.57 versus a 52-week high of $121.85
iShares MSCI Japan ETF (EWJ): $85.53 versus a 52-week high of $85.99
These aren't random winners. Each one has a specific tailwind pushing it higher, and understanding what's driving these markets tells you something about where global capital is flowing right now.
The Stories Behind The Strength
Norway: Steady As She Goes
The Norwegian stock market has been buoyed by stable monetary policy and solid commodity fundamentals. Norges Bank held its policy rate at 4% during its final monetary policy decision of 2025, and Morningstar analysts are forecasting the first rate cut around mid-2026. For a resource-heavy economy like Norway's, stable rates combined with decent commodity prices create a pretty comfortable environment for equities.
Turkey: Inflation Is Finally Cooperating
Turkey has started 2026 on a positive note as inflation trends show clearer signs of deceleration. The country's annual inflation rate declined to 30.89% in December 2025—the lowest since November 2021 and below market expectations, according to Trading Economics. Yes, 30% inflation still sounds high, but when you're coming down from much worse, the direction matters. The slowdown has strengthened market confidence in the central bank's rate-cutting cycle, reviving investor interest in Turkish stocks.
South Korea: The AI Chip Rally Is Real
The South Korean rally has been driven primarily by a powerful semiconductor rebound. The KOSPI has surged to record levels, closing above 5,000 points for the first time on Tuesday. According to Business Korea, the surge reflects booming AI chip sales, strong December export numbers, and rising optimism around next-generation HBM memory chips. When your economy is heavily weighted toward chipmakers and AI demand is exploding globally, that's a pretty nice tailwind. The earnings trajectory of semiconductor companies remains a solid foundation for market confidence heading into the year.
Japan: Political Clarity Meets Economic Optimism
Japanese stocks have rallied on a combination of political and macroeconomic tailwinds. Japanese Prime Minister Sanae Takaichi dissolved the lower house of parliament on Jan. 23, paving the way for a snap election on Feb. 8 as she looks to capitalize on high public approval ratings. Plans for bold fiscal policies—including increased military spending and possible tax cuts—have fueled risk-taking sentiment among investors.
Adding to the positive momentum, the Bank of Japan has upgraded its growth forecast. The central bank now predicts economic growth of 0.9% for the fiscal year ending March 2026, up from 0.7%, while also raising its fiscal 2026 growth forecast to 1%. It's not explosive growth, but it's moving in the right direction, and that matters when you're coming off years of stagnation.
The broader takeaway here? Global markets aren't moving in lockstep anymore. Investors are getting pickier, and they're rewarding the countries that are getting their economic house in order—or at least showing signs of improvement. Whether it's cooling inflation in Turkey, chip-driven growth in South Korea, or policy clarity in Japan, the story matters as much as the numbers.
