Asian stocks slip from pre-war peak on ceasefire doubts

BENGALURU: Emerging Asia equities fell on Wednesday as investors looked past the US-brokered Iran ceasefire to risks of crude supply disruptions, while Indonesian assets were largely unfazed after the central bank kept its rate steady.

The MSCI gauge of EM Asia equities fell 0.4 percent, sliding from the February 27 highs the index had touched earlier this week. A broader gauge of global EM stocks also inched lower from its late-February peak.

Bank Indonesia stood pat on its rates, as expected, to anchor the rupiah’s stability amid the war in Iran.

The currency has been under sustained pressure since the Middle East war broke out in late February, losing over 2 percent to become one of the worst-hit units in the region.

The rupiah trimmed some of its losses on the day after the decision, trading at around 17,175 per US dollar. It had weakened to 17,185 a dollar earlier in the session, within striking distance of its all-time low of 17,193.

The central bank also said the rupiah would be stable going forward, with the possibility of it appreciating, aided by the central bank’s policy.

Stocks in the Southeast Asian nation pared some of their losses too, shedding 0.2 percent.

South Korea’s high-flying KOSPI index hit a record high earlier in the day, then edged lower, only to close at a record peak, driven by gains in battery makers.

Equities in Singapore, Malaysia, the Philippines, and Indonesia slipped about half a percentage point each. Thailand’s shares shed 0.2 percent.

US President Donald Trump said he would indefinitely extend the Iran ceasefire but announcement provided no clarity on whether Iran or US ally Israel would agree.