Trade war puts Indonesia and India at risk, S&P economist warns

Emerging market frontier countries especially vulnerable to financial turmoil

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The Indonesia Stock Exchange in Jakarta is especially vulnerable to financial market turbulence, S&P says. (Photo by Takaki Kashiwabara)

MITSURU OBE, Nikkei staff writer

TOKYO -- Escalating trade tensions between the U.S. and China are raising economic uncertainty in Asia and sending ripples through financial markets in Indonesia and India, Paul Gruenwald, global chief economist for S&P Global Ratings said in an interview.

Investors have been shifting from emerging markets because of better interest rates in the U.S., and the ongoing economic uncertainty will further fuel this shift, he said.

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