BENGALURU: Indonesia’s rupiah and stocks were little changed on Wednesday after the central bank held interest rates steady, while most emerging Asian markets drifted lower as rising oil prices and elevated US bond yields dampened investor appetite for risk.
Bank Indonesia (BI) held its benchmark interest rate unchanged for a second straight meeting and retained its 2026 growth forecast, delivering its first policy decision under interim Governor Destry Damayanti after the surprise resignation of Perry Warjiyo last month.
The MSCI Emerging Asia equities index fell 2 percent, tracking overnight losses on Wall Street as investors remained cautious after the yield on the US 30-year Treasury touched its highest level in nearly two decades this week.
South Korean stocks led regional declines, with the KOSPI dropping 5.8 percent to a week low.
Taiwan’s benchmark fell 1.3 percent with Taiwan Semiconductor Manufacturing losing as much as 1.9 percent.
On the currency front, the MSCI Emerging Market Currency Index edged 0.3 percent higher, supported by a 1 percent gain in the South Korean won.
The Singapore dollar rose around 0.1 percent, while the Philippine peso hovered near the record low of 61.952 reached earlier in the day and was last down 0.1 percent. The Malaysian ringgit slipped 0.1 percent, the Taiwan dollar fell 0.2 percent and the Thai baht eased marginally.
The US dollar traded near multi-month lows against major peers as investors awaited minutes of the Federal Reserve’s latest policy meeting later in the day for fresh clues on the outlook for US interest rates.
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