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STOCK MARKET, June 19 - Indonesia's rupiah weakened and equities were choppy on Friday after MSCI raised fresh concerns over the country's investability, citing limited visibility in shareholdings and coordinated trading behaviour.
The warning dealt another blow to Indonesia, the world's worst-performing major stock market, coming just days ahead of MSCI decision on whether to downgrade Indonesia to frontier status from emerging market, a move that could trigger $13 billion in outflows.
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Foreign investors have already pulled about $3.65 billion worth of Indonesian stocks so far in 2026, as per exchange data.
Benchmark Jakarta Composite Index drifted in a tight range around its prior close where it settled after the central bank hiked interest rate for a third time in a month.
The rupiah dipped to 17,850 per U.S. dollar, nearing a one-week low.
The next major test for Indonesian assets will be the index provider's market classification review next week. A downgrade by MSCI would force tracking funds to sell and pressure active managers benchmarked to MSCI indexes to lower exposure.
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In its annual market accessibility review, MSCI also flagged persistent concerns over investability in Turkey and lowered its information flow criterion to "negative", citing limited transparency in shareholding structures.
Elsewhere in emerging Asia, South Korea's benchmark KOSPI jumped 3.6% to an all-time peak, driven by chipmakers Samsung Electronics and SK Hynix. That pushed the MSCI EM Asia gauge to a record high.
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Singapore stocks slipped 0.5%, retreating from a record high in the previous session, pressured by DBS Group, Oversea-Chinese Banking Corp and United Overseas Bank.
Stocks in Malaysia dipped 0.3%, while those in the Philippines advanced 0.6% a day after an interest rate hike. Financial markets in Taiwan were closed for a holiday.
