Indonesian Stocks Suffer Record MSCI Expulsion Drop
Indonesian markets faced severe selling after MSCI threatened to strip its emerging market status. Stocks plunged to a six-year low while the rupiah and bond yields weakened.
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Indonesia shares plummeted over 5% on Monday to a six-year low, extending a record two-day rout after MSCI INC threatened to strip the nation of its emerging market status. The drop follows an 11.6% plunge on Friday, turning the country's equities into the world's worst-performing major share market. A demotion to standalone status risks cutting Southeast Asia's largest economy off from international capital, lumping it with markets like Lebanon and Zimbabwe.
