Emerging Markets: Indonesian shares sink to five-year low, rupiah at record low of 17,950

Oversea-Chinese Banking

03/06/2026 08:45

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Indonesian shares at lowest since May 2021
Rupiah at record low of 17,950
STI surges as much as 1.1% to all-time high
Manila shares climb 1.6% to one-week high
Ringgit slips to near its lowest in nearly two months
By Sneha  Kumar

    June 3 (Reuters) - Indonesian equities slumped nearly 6% on Wednesday to their lowest level in five years, while the rupiah weakened to an all-time low, as shrinking trade surplus and inflationary pressures underscored challenges from prolonged high energy prices.
A strong dollar =USD pressured currencies across emerging Asia. The Philippine peso PHP= hovered near record lows and the Malaysian ringgit MYR= fell to a two-month low.
The Iran war-driven energy shock has placed significant strain on energy-importing Southeast Asian economies, particularly Indonesia and the Philippines. The resulting pressure on trade balances has contributed to capital outflows and weaker currencies. 
     Gulf hostilities flared again on Wednesday, sending oil prices up more than 1%. 
Adding to regional uncertainty, the U.S. administration has proposed additional import duties of 10% or 12.5% on goods from 60 economies, including Indonesia, Malaysia and Singapore, over forced labour failures. 
Indonesia's Jakarta Composite Index .JKSE tumbled in its worst day in more than four months. The rupiah IDR= plunged to a record low of 17,950 a dollar.
"The most immediate trigger is the combination of higher oil prices, a near-vanishing April trade surplus, another record-low rupiah, and concerns that Indonesia's fiscal position will become harder to defend if energy prices stay elevated," said Josua Pardede, chief economist at PermataBank.
"The risk is that if USD/IDR approaches or breaks 18,000 while equities keep falling and SBN (government bond) yields rise, the market may start pricing a broader confidence shock."
Data released on Tuesday showed Indonesia's trade surplus shrank to a six-year low in April and inflation in May moved toward the top of the target range, coming two weeks after Bank Indonesia's larger-than-expected 50 basis-point rate hike.
In contrast, Philippine stocks .PSI rose 2%, extending gains for a third session after the country said fuel retailers would roll back recent price increases. The Philippine peso PHP= eased slightly but stayed close to a record low hit earlier this week.    
Elsewhere in emerging Asia, Singapore shares .STI rose as much as 1.1% to an all-time high, buoyed by gains in heavyweight banks DBS Group DBSM.SI and OCBC OCBC.SI. 
Taiwanese shares .TWII also scaled record peaks. The MSCI gauge of EM Asia stocks .MIMS00000PUS was flat.
Malaysia's benchmark gauge .KLSE added 0.6%, while the ringgit MYR= weakened to 3.9840 per dollar, its lowest in two months.
Markets in South Korea .KS11 and Thailand .SETI were closed for public holidays. 


HIGHLIGHTS:    
** South Korea secures access to Anthropic's Mythos AI model, Science Ministry says
** Goldman upgrades Taiwan, South Korea stocks as Asia rally intensifies
** Indonesia's sovereign wealth fund eyes US dollar bond sale, arranges investor calls


Asia stock indexes and currencies at 0705 GMT







            
              COUNTRY
            
          

            
              FX RIC
            
          

            
              FX DAILY %
            
          

            
              FX YTD %
            
          

            
              INDEX
            
          

            
              STOCKS DAILY %
            
          

            
              STOCKS YTD %
            
          
Japan
JPY=
-0.04
-2.07
.N225

            2.50
          
35.88
China
CNY=CFXS
-0.09
+3.20
.SSEC
0.26
2.94
India
INR=IN
-0.52
-6.15
.NSEI
-1.25
-11.25
Indonesia
IDR=
-0.64
-7.11
.JKSE
-5.02
-31.95
Malaysia
MYR=
-0.53
+1.81
.KLSE
0.25
0.43
Philippines
PHP=
-0.17
-4.75
.PSI
0.68
-1.65
S.Korea
KRW=KFTC
-0.40
-5.23
.KS11
0.15
108.85
Singapore
SGD=
-0.17
+0.32
.STI
0.76
10.55
Taiwan
TWD=TP
+0.09
+0.07
.TWII
1.98
60.41
Thailand
THB=TH
-0.31
-3.94
.SETI
1.26
26.07


 (Reporting by Sneha Kumar in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Sneha.kumar@thomsonreuters.com))