Emerging Markets: Indonesia shares slide on MSCI worries; Singapore banks drag index lower

United Overseas Bank

03/11/2026 07:56

Updates for afternoon trade
Singapore stocks slip 1.5%
South Korea, Taiwan stocks close down over 3%
Taiwan dollar logs lowest level in over 18 months
By Roshan Thomas and Ankur Banerjee
Nov 3 (Reuters) - Indonesian stocks slumped on Tuesday as index-compiler MSCI's downgrade warning last month continued to weigh on investor sentiment, while a deepening tech rout pushed most regional bourses sharply lower.
Jakarta's benchmark index .JKSE, the world's worst-performing stock market this year, fell more than 3% as investors remained unconvinced regarding the stock market and government response to MSCI concerns regarding opaque ownership and coordinated trading behaviour.   
For the year, the index is down 43%.
Analysts at Bank of America said in a note that recent policy measures by Bank Indonesia and MSCI's proposed downgrade had undermined market confidence.
In Singapore, the benchmark index .STI fell to a four-month low and was on course for a fourth straight session in the red, as banking stocks weighed on the market.
"Selloff in Singapore bank stocks in October was related to market concerns that higher bond yields could weigh on bond valuations and therefore book value, which would potentially create pressure on the banks' CET1 ratio, a key measure of a bank's financial strength, and, by extension, shareholder returns," said Kathy Chan, equity analyst at Morningstar. 
Tuesday's declines were led by banking heavyweights DBS Group DBSM.SI, United Overseas Bank UOBH.SI and Oversea-Chinese Banking Corp OCBC.SI ahead of their earnings later in the week.
     
AI IN CROSSHAIRS
Disappointing US corporate earnings have stoked worries across global markets that the debt-fuelled AI infrastructure buildout may not yield profit quickly enough. 
MSCI's emerging markets index .MSCIEF fell 1.8% to its lowest level since late July, led by losses in tech-heavy gauges in South Korea .KS11 and Taiwan .TWII. Both stock markets closed down 3.6%. 
Oracle's ORCL.N fundraising plans and Anthropic's updated IPO filing on Monday heightened investor concerns about valuations and the costs of pursuing growth in the sector. 
"I don’t think this is the end of the AI trade given the strong earnings being generated... I think it’s just a correction for both valuations and positioning," said Ben Bennett, head of investment strategy for Asia at L&G Asset Management in Hong Kong.
In currency markets, the South Korean won KRW= added 0.4% while the Taiwan dollar TWD=TP lost 0.7% to record its weakest level since mid-April 2025.
Elsewhere, regional currencies traded mixed as investors awaited the US midterm elections, which supported the dollar's safe-haven appeal, although gains in the greenback were tempered by a sharp decline in oil prices.
The Indonesian rupiah IDR= strengthened to 18,165 per US dollar. 
In China, the onshore yuan CNY=CFXS weakened about 0.4%, snapping a 13-session winning streak. China's central bank moved to tighten onshore dollar liquidity to slow the Chinese currency's rapid appreciation. The benchmark Shanghai Composite Index .SSEC lost more than 1%.
       
HIGHLIGHTS:    
** Indonesian 10-year benchmark yields at 7.707%
** Australia's central bank lifts rates to 18-year high, split vote points to pause ahead
** Apple forecasts margin drop in holiday quarter as rising memory costs bite
     
     
Asia stock indexes and currencies at 0714 GMT
COUNTRY
FX RIC
FX DAILY %
FX YTD %
INDEX
STOCKS DAILY %
STOCKS YTD %
Japan
JPY=
+0.08
-0.74
.N225
-
25.31
China
CNY=CFXS
-0.39
+4.70
.SSEC
-0.95
-9.21
India
INR=IN
+0.03
-5.27
.NSEI
0.98
-9.41
Indonesia
IDR=
-0.11
-8.20
.JKSE
-3.30
-43.00
Malaysia
MYR=
-0.15
-0.44
.KLSE
0.01
-3.60
Philippines
PHP=
-0.51
-7.35
.PSI
-0.99
-7.08
S.Korea
KRW=
+0.41
+7.38
.KS11
-3.59
34.04
Singapore
SGD=
-0.09
+0.43
.STI
-0.74
13.31
Taiwan
TWD=TP
-0.74
-4.25
.TWII
-3.59
49.52
Thailand
THB=TH
-0.11
-6.79
.SETI
-0.34
19.24

Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Reporting by Roshan Thomas in Bengaluru; Editing by Sherry Jacob-Phillips and Harikrishnan Nair)
((Roshan.Thomas@thomsonreuters.com))