Won, Rupiah Stand to Gain Most When Foreign Flows Return to EM

  • Korea has the simplest path to winning back equity inflows
  • Indonesia’s allure may depend on weakness in the U.S. dollar
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The Korean won and Indonesia’s rupiah would be the two biggest beneficiaries should foreign-investor flows return to Asia, once the risk event of the U.S. presidential election is out of the way.

That’s according to a Bloomberg study of Z-scores that measure the 12-month rolling sum of portfolio inflows and compares this to the five-year average with currency valuation and economic fundamentals taken into account.