The jury is still out

While MSCI’s decision removes an immediate overhang for regional markets, it does not eliminate the longer-term risks. — Reuters

GLOBAL index provider MSCI’s decision to keep Indonesia in its Emerging Markets (EM) Index provides some near-term relief for investors and markets across the region, including Malaysia.

Needless to say, the decision removes the immediate risk of major regional capital outflows that had been associated with the probability of Indonesia being removed from the index.