EMERGING MARKETS-Indonesian stocks recover as regulators introduce reforms, Asian currencies weaken

Jakarta stocks pare most of day’s losses Indonesian regulators introduce measures to address MSCI concerns South Korea stocks hit record high Indian rupee hit record low (Updates for afternoon trade) By Nichiket Sunil Jan 29 (Reuters) - Indonesian stocks pared most losses on Thursday after the country’s regulators unveiled measures to address MSCI’s concerns about market transparency, while most Asian currencies lost ground against a shaky greenback. Jakarta’s benchmark stock index (.JKSE) trimmed losses and was last down 1.4%. It fell 8% earlier in the session, triggering an automatic trading halt for the second straight day. It fell 7.4% on Wednesday. Indonesia’s financial regulator said it would double the free-float requirement to 15% in response to index provider MSCI’s concerns on transparency that triggered the selloff. Mahendra Siregar, head of the country’s Financial Services Authority, said communication with MSCI had been positive and it was awaiting a response to its proposed measures, which he hoped could be implemented soon with the issues resolved by March. “Regulators have signalled a willingness to engage constructively with MSCI and improve market transparency,” said Gary Tan, Singapore-based portfolio manager at Allspring Global Investments. “If these efforts are clearly communicated and progress is demonstrated, we believe investor confidence can recover and support a re-rating from current levels.” Among other stock markets, Seoul’s KOSPI index (.KS11) ended up 1% at its record closing high. Hyundai Motor (005380.KS) rallied 7.2% after it vowed to improve its profit margin, while SK Hynix (000660.KS) rose 2.4%. The KOSPI has gained nearly 24% just this month, driven by optimism around artificial intelligence-linked assets. Philippine stocks (.PSI) fell 2.1%. Data showed that the country’s economic growth slumped to its weakest in almost five years in the final quarter of 2025. The peso (PHP=) fell 0.3%, while other regional currencies also lost ground. The dollar remained feeble even after Treasury Secretary Scott Bessent’s comment that Washington has a strong dollar policy. The remarks came ahead of the Federal Reserve’s decision to keep interest rates on hold as widely expected. The Malaysian ringgit (MYR=) fell 0.3%. The Indonesian rupiah (IDR=) fell 0.4%, weighed by outflows in the equity market. The Singapore dollar (SGD=) was little changed at 1.2622 per U.S. dollar after the Monetary Authority of Singapore held policy steady while flagging upside inflation and demand risks amid a resilient economic outlook. The Indian rupee (INR=IN) hit an all-time low, weighed by persistent weakness in foreign capital flows. HIGHLIGHTS: South Korea pension fund to respond to FX volatility, chief says Starmer, Xi signal reset in China-UK ties, eye economic wins Vietnam, EU elevate diplomatic ties as international order “is under threat” Asia stock indexes and currencies at 0754 GMT Japan (JPY=) +0.05 +2.17 (.N225) 0.03 6.03 China S * India (INR=IN) -0.21 -2.29 (.NSEI) 0.05 -2.96 Indonesia (IDR=) -0.27 -0.45 (.JKSE) -1.88 -5.58 Malaysia (MYR=) -0.33 +3.26 (.KLSE) -1.29 3.20 Philippin (PHP=) -0.38 -0.24 (.PSI) -2.08 2.82 es S.Korea C * Singapore (SGD=) -0.05 +1.81 (.STI) 0.22 5.90 Taiwan (TWD=TP) +0.06 +0.44 (.TWII) -0.82 12.34 Thailand (THB=TH) +0.00 +1.09 (.SETI) -0.45 5.81