Much focus and attention these days among investors, traders, politicians, and the media is on China. With good reason. Demographics and a growing economy may make this the "Century of China".
However, there is another Asian economy and market that you shouldn't forget about: India. This is a country with a massive population and growing education and business base. Incremental increases in the growth of lower and middle classes in countries like India and China can have earthquake-like fiscal effects.
Take a look below at the relative performance of the Powershares India ETF (PIN) versus the iShares Xinhua China Index (FXI). You might be surprised to see that the India ETF PIN has outperformed the China ETF FXI since the March 9th, 2009 market bottom.
FXI vs PIN Price Performance Chart
Here are the top holdings of the PIN ETF (as of 9/30/09):
Tag >> Chindia
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The India stock market is up huge after election results look to have marked a shift away from Left leaning parties. Expectations are high there for economic reform, infrastructure growth, increased foreign investment and tax reform. An India ETF, PIN, is currently up about 20%. China may be feeling some positive effects from this huge bump, as the FXI is up 4.5% currently. While this does sound like significant political news, be careful of jumping on board after such a strong reaction has already occurred. If I had to guess, there will be a settling down/mild pullback after the initial euphoria wears off, but then the uptrend may continue.