Emerging market economies diverge as lockdowns persist

A general view of a traditional market in Jakarta, Indonesia. A partial lockdown in Jakarta has been extended until May 22, while more cities and towns have also adopted social distancing measures.

(Bloomberg): Emerging markets have rebounded over the past six weeks amid growing optimism they can ease lockdown restrictions and return their economies to normal. There’s still a long way to go.

Countries that are in the vanguard of restoring activity have been rewarded with stocks in China and South Korea outperforming their peers this year.

The focus turns to which economies have lagged behind, such as Indonesia and Brazil, but may now be able to catch up in loosening restrictions put in place to curb the coronavirus pandemic.