Indonesia Markets Reopen as Shifting Iran Headlines Spur Caution

Indonesia’s markets are likely to grapple with fluctuating sentiment when they reopen Wednesday after a week-long holiday, as investors weigh rapidly shifting headlines on the Iran war and persistent concerns over fiscal and governance risks.

A US-listed exchange-traded fund tracking Indonesia’s stocks has slid about 2% since markets closed for Lebaran, the holiday marking the end of Ramadan. An Asean stock gauge fell 1.8% during the break. Offshore rupiah forwards rose only about 0.3% higher despite the central bank’s intervention late last week to stem currency weakness, underscoring investors’ reluctance to price in relief.