Elevated yields buoy Indonesian rupiah; South Korea, Taiwan stocks slide
SMH•Indonesia’s 10-year bond yield held at 7.707%, its highest since mid-May 2020, while the rupiah strengthened and Jakarta stocks fell as much as 3%. South Korean and Taiwanese stocks also declined amid unease over AI investment returns.
1. Indonesia yields rise
Indonesia’s 10-year bond yield held at 7.707%, a six-year high, and is up more than 150 basis points this year. The elevated yields helped the rupiah pull away from record lows it neared earlier in the week; Jakarta stocks fell as much as 3%.
2. Regional stocks retreat
South Korea’s benchmark index ended 1.2% lower and Taiwan’s fell 0.9%. Samsung Electronics shares dropped 4.1% after earnings fell short of analyst expectations, while TSMC shares lost more than 0.4%.
3. AI spending concerns
Investors showed growing unease over whether companies’ large AI investments will generate commensurate returns. Elsewhere, Asian currencies broadly strengthened after the Federal Reserve held rates.
