BENGALURU: Most Asian emerging stock markets retreated on Monday, with Southeast Asia’s two biggest economies disrupted by political turmoil, triggering a flight from riskier assets in the region.
In Indonesia, Southeast Asia’s largest economy, stocks slumped as much as 3.61 percent - the biggest intraday drop in nearly five months - before recovering partially to be down 1.5 percent by 0327 GMT.
Widespread protests against controversial election law changes, which critics say strengthen political dynasties, have killed at least eight people and sparked fears of prolonged instability.
Bank Indonesia moved aggressively to defend the rupiah , which fell 0.95 percent on Friday as protests escalated.
Central bank monetary chief Erwin Gunawan Hutapea pledged currency intervention to ensure movements reflect fundamentals, with the bank actively defending the currency across markets.
The rupiah was little changed on Monday.
“Recently, we have observed an increase in protester activities and with the political calendar fairly heavy for the rest of the year, we cannot close the door on further protests if the authorities and the negotiating parties do not see eye-to-eye,” Lavanya Venkateswaran, senior ASEAN economist at OCBC, said.
Thailand’s Constitutional Court dismissed Prime Minister Paetongtarn Shinawatra on Friday for ethics violations after just one year in office, marking the fifth Thai premier stripped by judges since 2008.
The ruling catapulted Southeast Asia’s second-largest economy into fresh uncertainty.
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