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JPMorgan Reverses Bearish Call That Angered Jakarta

  • Bank’s analysts upgrade assessment of equities to "neutral"
  • Indonesian government welcomes bank’s new rating on market
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JPMorgan Reverses Bearish Call on Indonesian Stocks


JPMorgan Chase & Co. upgraded its assessment of the Indonesian stock market, reversing an earlier bearish call that prompted Jakarta to stop doing business with the U.S. bank.

The bank’s analysts raised their "tactical" view of Indonesian equities one level to “neutral” in a report dated Monday, saying volatility in emerging-market bonds following Donald Trump’s U.S. election victory in November should now subside. The upgrade came two weeks after Indonesia’s government cut business ties with JPMorgan, citing a two-notch equities downgrade by the bank in November.