Indonesian stocks rebound from six-year low; Taiwan dollar slips
SPY•Indonesian equities rebounded as much as 3.8% after falling nearly 15% over two sessions, while the Taiwan dollar weakened to 32.616 per U.S. dollar. South Korea’s KOSPI fell 4.2%, and the rupiah ended a four-day slide.
1. Regional markets diverge
Indonesian equities rebounded on Tuesday from a six-year closing low, recovering some of the losses that followed MSCI’s warning last week. The Jakarta market rose as much as 3.8%; the exchange had announced measures to address MSCI’s concerns, and traders bought some stocks at a discount.
2. Taiwan dollar weakens
Taiwan shares fell 0.6%, with TSMC down 0.8%, while the Taiwan dollar weakened to 32.616 per dollar and has lost more than 1.5% over four sessions. Research strategist Dilin Wu said foreign equity selling was creating demand for U.S. dollars and pressuring the currency.
3. Korea falls, rupiah firms
South Korea’s KOSPI dropped 4.2% for a fourth consecutive session, with Samsung Electronics down 2.5% and SK Hynix down 3.8%. The rupiah firmed marginally to 17,995 per dollar, ending a four-day slide. Bank Indonesia was narrowly expected to hold rates on Wednesday, a Reuters poll found.
