Indonesian stocks rebounded from a six-year closing low after a nearly 15% loss over two sessions triggered by MSCI's warnings, with shares rising as much as 3.8% intraday as the exchange moved to ease concerns. Regional markets fell, with MSCI's emerging Asia gauge down 1.3% and South Korean equities sliding 4.2% as investors dumped chipmakers over heavy AI spending without clear returns. The Taiwan dollar weakened to 32.616 per dollar, near an 18-month low, as foreign investors pulled record sums from local equities. The rupiah edged up to 17,995 per dollar, snapping a four-day losing streak. An analyst called the rebound a short-term improvement in sentiment rather than a sign that the outlook had fundamentally improved.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on thestar.com.my ↗
Keywords
Indonesiaexchange ratesMSCIAsiacapital flows
Open a keyword to see other news on the same topic.
Related tickers and likely impact
VNINDEX
• NeutralRelevance: low
| Market | Vietnam stocks |
|---|---|
| Close on 10/20/2026 | 1,691.97 |
| Change that session | +0.13% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Indonesian markets inch up after authorities move to stem rout on MSCI expulsion fears - Markets
Jakarta's benchmark index rose 3% after hitting a six-year low in the previous session, following a 14.8% drop over Friday and Monday. A record US$82 billion two-day rout followed index provider MSCI's warning that it may move Indonesia from emerging markets to standalone status. To curb the selloff, the stock exchange halved the daily down limit to 7% from 15% and set a Rp 1 down limit on shares priced at Rp 14 or less. The rupiah strengthened slightly to 18,010 per US dollar but remained near the record low of 18,190 hit in June. Fitch's George Xu said the announcement had no material immediate credit implications, though external pressure could raise government borrowing costs.
- Indonesia gets a wake-up call as MSCI prepares to remove it from global indexes
On Friday, MSCI said Indonesia's stock market no longer merits emerging-market status and proposed downgrading it to “standalone” status, which would exclude its stocks from global indexes tracked by passive funds. The move sent the benchmark index down 11% to a six-year low, its steepest one-day drop since 1998, while the rupiah slid 0.6% to 18,070 per US dollar. MSCI cited “significant concerns” over market dysfunction and insufficient reform progress, and UBS estimated passive outflows of about $4 billion, with active investors potentially adding $15 billion more. MSCI will consult market participants until April 2027 before reclassifying Indonesia unless it sees clear improvement in governance, and Indonesian officials questioned the timing and basis of the decision.
- Too Broken For Frontier : Indonesian Markets Suffer Worst Rout Since 1998 As MSCI Threatens The "Argentina Treatment"
MSCI warned that Indonesia may face a two-step downgrade, moving straight from Emerging Market to 'Standalone' status and skipping Frontier, which deepened the selloff in Jakarta. The Jakarta Composite Index fell 11.6% on Friday, its biggest one-day drop since January 1998, then closed down a further 3.6% on Monday. Since its January 20 peak, the index has lost about 45%, and according to Reuters, about $350 billion in market value has been wiped out since January. MSCI cited opaque shareholding structures, suspected coordinated trading and weak enforcement; Jakarta raised the minimum free float to 15% from 7.5%, but MSCI concluded the problems were too deep for Frontier status. MSCI will announce its decision by June 30, 2027, while OJK has fined entities 2.1 trillion rupiah ($116 million) linked to manipulation in three stocks.
- Indonesian stocks plunge to six-year low as MSCI downgrade fears mount
Indonesia's benchmark index fell over 5% on Monday to its lowest since early October 2020, as fears grew that MSCI could downgrade the market. On Friday MSCI proposed reclassifying Indonesia from emerging-market to stand-alone status, with a final decision expected by June that hinges on governance and transparency improvements. Goldman Sachs estimates a full removal from MSCI's emerging-market indexes could trigger about $5.6 billion in passive outflows, with a further $2.7 billion at risk if FTSE Russell follows. The MSCI Indonesia Index has fallen 47% this year, foreign investors have net sold $5.1 billion, and foreign ownership has dropped from 27% in January to 25% in October. Goldman keeps an underweight rating, warns Indonesian equities may not have bottomed, and expects the central bank to raise rates twice more by 25 basis points in Q4 2026 and Q1 2027.
- 'Panic' selling spreads across Indonesian market over risk of MSCI exclusion
Jakarta's benchmark index (JKSE) fell more than 5% on October 19 to its lowest level in six years, after plunging 11.6% on October 16, as MSCI considered reclassifying Indonesia from emerging to standalone market status, a move that could cut the country off from international capital flows. The rupiah weakened to 18,048 per USD, close to its record low of 18,190 in June, while the 10-year government bond yield rose to 7.4% from 7.169% on Friday. Goldman Sachs strategists said Indonesia now bears the burden of proof and must show that announced reforms are consistently implemented to avoid reclassification. Moody's and Fitch had earlier this year cut Indonesia's rating outlook to negative, and the central bank is widely expected to hold rates this week, though some analysts raise the possibility of a hike.
- Global Market : Indonesia stock exchange to meet MSCI after downgrade warning triggers market rout
Related markets
Latest news
- Amazon blocks agentic AI shopping. But Walmart is betting big that it's worth saying yes.
A Bank of America note led by Christopher Nardone, published Monday, argues Walmart stands to benefit if shoppers hand purchases to AI agents, citing its integration with multiple AI ecosystems, its own shopping assistant “Sparky” and partnerships including Meta's Muse. Walmart, Best Buy (BBY) and Ulta (ULTA) are among Muse's key partners, while some other retailers have blocked it. Amazon has blocked Muse from making purchases on its site and bars automated shopping tools, though it may not be losing much in sales since most people use AI mainly for research. Walmart's management, however, cannot say how popular shopping agents will become, and it is unclear how advertising, a growing business for Walmart, would be affected if screenless computers handle checkout.
- Stocks are driving consumption 'like never before' — and that exposes a big risk
In a note published Monday, Doug Peta, chief US investment strategist at BCA Research, argues the stock market is influencing the economy like never before. US household net worth reached over eight times disposable income at midyear, an all-time high, and the value of household equity holdings is nearly three times annual after-tax income. Peta estimates that a 10% gain in the S&P 500 over a year boosts household spending capacity as much as a 28% raise, making consumption more sensitive to equity moves. That sensitivity cuts both ways, as a future bear market could amplify spending pullbacks because households would feel vulnerable rather than wealthy.
- H.I.G. WhiteHorse Provides Financing to Be-Cloud and QualityHosting
H.I.G. WhiteHorse, the credit affiliate of H.I.G. Capital, has arranged a debt package to finance QualityHosting's acquisition of Be-Cloud, with QualityHosting being a portfolio company of PSG Equity. The package also provides additional capital for the combined company's future growth and M&A strategy. Be-Cloud, founded in 2012 and headquartered in France, is a leading European Microsoft Cloud Solution Provider with more than 37,500 active end customers and over 1,000 reseller and MSP partners. QualityHosting, a German Microsoft CSP, serves more than 30,000 end customers and has about 1,000 reseller partners.
- Residential electricity prices may be set by peak and off-peak hours
Vietnam's Minister of Industry and Trade, Lê Mạnh Hùng, submitted to the National Assembly on the afternoon of October 20 a draft amendment to the Electricity Law. It would allow retail electricity to be priced by peak, off-peak and normal hours where technical conditions allow, with a roadmap for applying this to residential customers. The draft also sets out a plan to eliminate cross-subsidies between customer groups and proposes incentive pricing for renewable energy, new energy and storage systems. Nguyễn Thanh Hải, chair of the National Assembly's Committee for Science, Technology and Environment, asked that the scope and roadmap for removing cross-subsidies and electricity bill support be clarified, kept separate from direct aid to poor households, and that investment risks not be shifted to the State or the public. The committee also warned that the wording requiring full recovery of costs and reasonable profit could be read as the State guaranteeing investors' financial results.
- HoSE officially announces roadmap for transferring nearly 300 HNX-listed stocks to trading on HoSE
As of mid-October 2026, HNX had 299 listed stock codes with total market capitalisation of about 450,000 billion VND. On 20/10, HoSE announced the roadmap for reorganising trading of listed stocks under Circular 139/2025/TT-BTC, dated 30/12/2025, from the Ministry of Finance. The last trading day for all HNX-listed stocks is 23/12/2026, and the stocks being transferred will be suspended on 24 and 25/12/2026. From 28/12/2026, all listed stocks will trade on HoSE, and listed companies, market members and investors are urged to prepare in advance.
- South Korean IPO plunge deepens AI market jitters as brent tops $111
South Korean data centre company Elice (0158S0) closed at 60,500 won ($45.57) on its debut, down over 30% from its 90,500 won offer price, despite a retail offering oversubscribed more than 400 times. The IPO raised $151 million at a valuation of roughly $755 million, according to Bloomberg. The debut came as the KOSPI dropped almost 4% to 5,552, with Samsung Electronics and SK Hynix also falling, and CoreWeave (CRWV) slipped another 3% in U.S. pre-market trading. Investors are questioning the borrowing costs, debt levels and returns of AI infrastructure spending, while Brent crude topped $111 a barrel, its highest since May, amid Middle East supply and shipping concerns.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.