Indonesian stocks extend gains after rate hold

BENGALURU: Indonesian equities advanced and the rupiah held onto early gains after the country’s central bank delivered a widely expected rate hold, while Asian AI-linked stocks extended their winning streak amid renewed optimism about chip demand.

Stocks in Jakarta rose 1.4 percent after Bank Indonesia (BI) kept interest rates unchanged at its first meeting since Destry Damayanti’s appointment as governor earlier this month.

Elsewhere, shares in Seoul closed 0.9 percent higher after a fourth straight session of gains. Korean stocks were buoyed by renewed optimism about chip demand, as strong interest in Meta’s new AI agent lifted global AI stocks driving the Nasdaq to a record high on Tuesday.

Currencies of net oil importers including the Philippines and India treaded water despite a gradual decline in oil prices since Tuesday after sources told Reuters that Saudi Arabia had restarted operations at its East-West Pipeline.

Thailand’s baht weakened 0.3 percent against the dollar after its cabinet on Tuesday approved USD1.29 billion in spending to extend a consumer subsidy scheme by two months, aiming to ease living costs pressured by rising energy bills.

The South Korean won weakened 0.8 percent against the dollar, reversing early gains.