Indonesian Stocks Dive 11% as MSCI Weighs Market Reclassification
- On Friday, Asian stocks rebounded following Thursday's heavy selling, when investors dumped technology shares amid concerns about cloud company Nvidia-backed CoreWeave's debt pile.
- CoreWeave's shares recovered on Thursday after extending Wednesday's 15.5% slump, as reports of distressed bond yields triggered a broad, AI-centered equity selloff globally.
- Indonesian stocks plunged more than 11% on Friday after index compiler New York-based MSCI announced plans to reclassify the country from 'Emerging Market' status.
- MSCI officials cited "ongoing opacity in shareholding structures" and suspected coordinated trading, warning that reclassification could force investment funds to sell Indonesian holdings.
- Capital markets analyst Kyle Rodda warned that global markets may face "a protracted period of this sort of volatility," with tech company earnings announcements due in the coming weeks.
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25 Articles
(Jakarta=Yonhap News) Correspondent Son Hyun-kyu = Morgan Stanley Capital International (MSCI), a global provider of investment information, plans to remove the Indonesian stock market from its global index...
Indonesia stocks dive 11pc after MSCI reclassification
Indonesian stocks plunged more than 11 percent on Friday as index compiler MSCI said it was "no longer appropriate" to maintain the country's emerging-market status, fuelling fears of an exodus of foreign investment. The US firm said earlier this year that investors had raised concerns about "ongoing opacity in shareholding structures" as well as co-ordinated trading behaviour that affected price information. Authorities in Jakarta said in April…
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Free Malaysia Today NewsIndonesian stocks dive 11% as MSCI weighs market reclassification
The US firm said earlier this year that investors had raised concerns about "ongoing opacity in shareholding structures" as well as coordinated trading behaviour that affected price information.
Most Asian stocks rise as calm returns after CoreWeave shock; Indonesia ...
MSCI's warning that Indonesia could lose its emerging market status triggered the country's sharpest stock market decline in nearly 30 years.
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