Indonesia stocks, rupiah stumble as consumer confidence dips

Indonesian shares hit a near two-week low and the rupiah was on track for its worst session in almost three weeks on Wednesday after data showed consumer confidence in the country fell last month.

Emerging Asian currencies broadly weakened against a stronger dollar, with Thailand's baht and South Korea's won leading losses, while concerns over slowing economic growth in the United States weighed on equities.

Equities in Jakarta dropped as much as 1.2% to their lowest since Aug. 27, after a central bank survey showed the consumer confidence index fell further in August to 77.3, compared with 80.2 in the previous month. The USD/IDR weakened 0.4% to 14,265.

Asian shares fall on growth anxiety, dollar holds gains

The survey overshadowed some relief on the pandemic front for Southeast Asia's most populous nation, whose daily coronavirus positivity rate dropped below the World Health Organization's (WHO) benchmark for the first time on Tuesday.

The Malaysian ringgit dipped slightly and stocks in Kuala Lampur were relatively flat a day before Bank Negara Malaysia's policy decision.

A Reuters survey showed that the central bank is expected to leave interest rates unchanged at 1.75%, as the country gradually reopens its economy amid a ramped-up COVID-19 vaccination drive.

The baht, one of the worst performing currencies in the region this year, dropped a further 0.5%, as the greenback hovered near a one-week peak. The won weakened 0.6%.

"Some drags from signs of portfolio outflows in recent days could be weighing on THB," analysts at Maybank said in a note.

A relatively weaker overnight session on Wall Street hurt stocks in the region, with Singapore, South Korea and Thailand shedding between 0.1% and 0.8%.

Meanwhile, a senior official in the Philippines said on Tuesday its capital region will remain under the second-strictest coronavirus containment measures, despite announcing a relaxation of curbs a day earlier. Stocks in Manila fell 0.3%.

Highlights

** Indonesian 10-year benchmark yields are up 2.4 basis points at 6.141%

** Top loser on the Jakarta stock index was Boston Furniture Industries Tbk PT, down 8.96%

** Taiwan stocks down 1.1%, their biggest one-day fall since August 19