Indonesian stocks bounce off six-year low; Taiwan dollar depreciates
EWJ•Indonesia's Jakarta Composite Index rose 3.1% after closing at a six-year low, while the Taiwan dollar weakened to 32.651 per dollar, near an 18-month low. South Korea's KOSPI fell 3.7%.
1. Indonesia stocks rebound
Indonesia's Jakarta Composite Index rose 3.1%, rebounding from a six-year closing low reached after MSCI warned last week that it could downgrade the market from emerging-market to standalone status. The exchange excluded stocks with highly concentrated shareholding from its benchmark and halved the daily limit on stock-price declines after equities fell nearly 15% over two sessions.
2. Regional markets weaken
MSCI's gauge of emerging Asia equities fell 1.4%, led by a 3.7% decline in South Korea's KOSPI. Samsung Electronics lost 3% and SK Hynix fell 4.2% as investors sold chipmakers amid concerns about heavy global AI investment without clear signs of returns.
3. Taiwan currency pressured
Taiwan's shares fell 1.1%, including a 0.6% decline in TSMC, while the Taiwan dollar weakened to 32.651 per dollar and has lost almost 2% in four sessions. A Pepperstone strategist said foreign equity outflows were putting pressure on the currency. The rupiah edged higher to 17,980 per dollar, ending a four-day losing streak; a Reuters poll showed expectations that Bank Indonesia would hold rates on Wednesday.
