Indonesian markets came under heavy pressure as escalating Middle East tensions triggered fresh capital outflows, pushing the rupiah to historic lows and sending equities toward bear-market territory. Key Takeaways Rupiah falls past Asian Financial Crisis levels Jakarta Composite Index drops 5%, nearing bear market Oil surge adds inflation pressure to net oil importer Investor confidence already shaken by ratings outlook cuts Rupiah Breaks Historic Support Indonesian rupiah weakened 0.6% to 17,015 per US dollar, slipping below its January record low and breaching levels last seen during the Asian Financial Crisis. The currency is now down 1.8% year-to-date, ranking among Asia’s worst performers. Key Point: The rupiah’s break below crisis-era levels signals deep investor anxiety. Stocks Slide Toward Bear Market Jakarta Composite Index tumbled 5%, putting the benchmark on track to enter a bear market (down 20% from recent highs). Indonesia’s equities are also...
South Korean equities were hammered again as escalating Iran war risks and oil prices above US$100 triggered aggressive foreign selling and fresh inflation fears. Key Takeaways Kospi plunged nearly 8% Monday after 11% drop last week Samsung and SK Hynix fell over 9% each Foreign investors dumped over 1 trillion won in one morning Oil above US$100 raises inflation and tightening risks Margin debt surge increases liquidation risk Korea Leads Asia’s Selloff KOSPI dropped nearly 8%, extending last week’s 11% slide. Tech heavyweights were hit hardest: Samsung Electronics Co -9%+ SK Hynix Inc -9%+ Key Point: Korea’s AI-driven rally made it especially vulnerable to a sharp unwind. The Kospi is still up more than 20% year-to-date, but heavy positioning and leveraged bets have amplified the downside move. Oil Above US$100 Triggers Inflation Fear Crude Oil has surged past US$100 per barrel. South Korea, a net energy importer, is highly exposed to higher fuel costs via: Man...