BENGALURU: Indonesian stocks were headed for their worst week in more than three months on Friday, hurt by a new minimum share price rule, while elevated bond yields, higher oil prices and a stronger US dollar put regional currencies on track for weekly losses.
Stocks in Jakarta have declined about 3.8 percent so far this week, on track for their biggest weekly fall since late June, after a new exchange rule lowering the minimum share price to 1 rupiah from 50 rupiah took effect on Monday.
Indonesia’s benchmark index has been ASEAN’s worst performer this year, down more than 30 percent, after an MSCI downgrade warning in January over opaque ownership structures, limited free-float visibility and concerns about trading data triggered a broad selloff. On Friday, the index was down 0.3 percent.
Regional currencies ticked higher on Friday, but were set for weekly losses as elevated Treasury yields supported the dollar, which hovered near a 17-month high, while oil prices held above USD100 a barrel.
The Thai baht has been particularly vulnerable recently as elevated oil prices threaten higher import bills. It was the worst regional performer this week, weakening 0.7 percent and on track for its fourth straight weekly loss.
Adding to the cautious mood, turmoil in global bond markets persisted. The benchmark US 10-year Treasury yield hit its highest since 2002 overnight, after posting its biggest quarterly rise in 32 years.
The US 10-year Treasury yield climbed about 53.5 basis points last month, while 10-year benchmark yields in Germany and France rose 25.49 bps and 68.75 bps, respectively. By comparison, yields in South Korea, Taiwan, Singapore, Indonesia and Malaysia rose only between 7 and 16 basis points.
Copyright Business Recorder, 2026