Indonesian stocks bounce off six-year low; Taiwan dollar depreciates
SPY•Indonesia’s Jakarta Composite Index rose 3.1% after hitting a six-year closing low, while the Taiwan dollar weakened to 32.651 per dollar as foreign equity outflows weighed on the currency. South Korea’s KOSPI fell 3.7%.
1. Indonesia stocks rebound
Indonesia’s Jakarta Composite Index rose 3.1%, recovering from a six-year closing low after MSCI warned last week that it could downgrade the market from emerging-market to standalone status, potentially prompting passive-fund selling. The exchange introduced measures to address MSCI’s concerns, including excluding stocks with highly concentrated shareholding from its benchmark and halving the daily share-price down limit. The rupiah strengthened marginally to 17,980 per dollar, ending a four-day slide.
2. Regional markets weaken
The Taiwan dollar weakened to 32.651 per dollar and has lost almost 2% over four sessions, while Taiwan’s shares fell 1.1% and TSMC declined 0.6%. A strategist said foreign equity selling was creating demand for US dollars and pressuring the Taiwan currency. South Korea’s KOSPI dropped 3.7% for a fourth consecutive session, with Samsung Electronics down 3% and SK Hynix down 4.2%.
