Indonesian Stocks Tank as Downgrade Risk Sets Off Rush for Exits

STOCK MARKET - SINGAPORE. Indonesian stocks headed on Thursday for their steepest two-day slump since 1998 during the Asian financial crisis, as the risk of a downgrade to frontier market status rattled already fragile investor confidence and triggered a rush for the exits.

Authorities in Southeast Asia's largest economy sought to stem the slide, which Finance Minister Purbaya Yudhi Sadewa called a temporary shock, saying there was no problem with economic fundamentals.