Indonesia stocks, rupiah stumble as consumer confidence dips

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Indonesian shares hit a near two-week low

and the rupiah was on track for its worst session in almost

three weeks on Wednesday after data showed consumer confidence

in the country fell last month.

Emerging Asian currencies broadly weakened against a

stronger dollar, with Thailand’s baht and South Korea’s

won leading losses, while concerns over slowing

economic growth in the United States weighed on equities.

Equities in Jakarta dropped as much as 1.2% to their

lowest since Aug. 27, after a central bank survey showed the

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consumer confidence index fell further in August to 77.3,

compared with 80.2 in the previous month. The USD/IDR weakened

0.4% to 14,265.

The survey overshadowed some relief on the pandemic front

for Southeast Asia’s most populous nation, whose daily

coronavirus positivity rate dropped below the World Health

Organization’s (WHO) benchmark for the first time on Tuesday.

The Malaysian ringgit dipped slightly and stocks in

Kuala Lampur were relatively flat a day before Bank

Negara Malaysia’s policy decision.

A Reuters survey showed that the central bank is expected to

leave interest rates unchanged at 1.75%, as the country

gradually reopens its economy amid a ramped-up COVID-19

vaccination drive.

The baht, one of the worst performing currencies in

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the region this year, dropped a further 0.5%, as the greenback

hovered near a one-week peak. The won weakened 0.6%.

“Some drags from signs of portfolio outflows in recent days

could be weighing on THB,” analysts at Maybank said in a note.

A relatively weaker overnight session on Wall Street hurt

stocks in the region, with Singapore, South Korea

and Thailand shedding between 0.1% and 0.8%.

Meanwhile, a senior official in the Philippines said on

Tuesday its capital region will remain under the

second-strictest coronavirus containment measures, despite

announcing a relaxation of curbs a day earlier. Stocks in Manila

fell 0.3%.

HIGHLIGHTS

** Indonesian 10-year benchmark yields are up 2.4 basis

points at 6.141%

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** Top loser on the Jakarta stock index was Boston

Furniture Industries Tbk PT, down 8.96%

** Taiwan stocks down 1.1%, their biggest one-day

fall since August 19

Asia stock indexes and

currencies at 0405 GMT

COUNTRY FX RIC FX FX INDEX STOCKS STOCK

DAILY YTD % DAILY S YTD

% % %

Japan +0.00 -6.38 0.41 9.01

China +0.05 +1.00 0.07 5.93

India +0.00 -0.48 0.11 24.32

Indonesia -0.39 -1.58 -0.90 1.31

Malaysia -0.04 -3.26 -0.07 -2.76

Philippines +0.07 -4.20 -0.28 -3.45

S.Korea -0.61 -6.76 -0.87 9.96

Singapore +0.01 -1.81 -0.69 8.55

Taiwan -0.11 +2.81 -1.07 17.03

Thailand -0.52 -8.57 -0.01 12.90

(Reporting by Harish Sridharan in Bengaluru; Editing by Stephen

Coates)

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