Indonesia’s Virus Surge Has Nervy Traders Recalling India Rebound
- Light positioning in rupiah, stocks is positive for Indonesia
- ‘Authorities continue to offer market confidence,’ OCBC says
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Indonesian investors are understandably worried about the potential impact of the spreading pandemic on their holdings. If the experience of India is any guide, they have some reason for confidence.
India’s bonds, currency and stocks were all beaten down earlier this year as the outbreak raged across the nation -- but rebounded once an inflection point in cases was reached. Favorable positioning suggests Indonesia, which is now seeing daily infections exceed India’s, may be even better placed to bounce back once numbers level off.