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<Asia> BOJ Reportedly Mulls Rate Hike This Month; Japan, Taiwan, Korea, Singapore Shares Retreat from Highs; Indonesia IDX Slumps 3.9% to Near 5.5-Year Low
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Tensions in Iran have escalated, and the three major US stock indices retreated from highs overnight (3rd). Tech stocks came under pressure after earnings releases, with CrowdStrike Holdings, Inc. (CRWD.US) and Broadcom Inc. (AVGO.US) plunging 11.2% and 13.8% respectively in after-hours trading, while Palo Alto Networks, Inc. (PANW.US) fell 3.3% after hours. Major Asia-Pacific markets were broadly softer today (4th). Japanese, Taiwanese and Singaporean equities, which had repeatedly hit record highs in recent days, pulled back from peaks. South Korean stocks resumed trading after a holiday and retreated from historical highs, while Indonesias benchmark index extended its sharp decline by nearly 4%, hitting a near five-and-a-half-year low. Mainland Chinas A-share markets were weak, with the Shanghai Composite and Shenzhen Component indices falling 0.4% and 0.5% at midday to 4,066 and 15,632, respectively. Hong Kong stocks extended losses, down 357 points or 1.4% at midday to 25,276, with turnover of HKD143.8 billion. Heavyweight AIA (01299.HK) tumbled 4%, dragging on the broader market. Resource stocks were sold off, with CHALCO (02600.HK), CHINAHONGQIAO (01378.HK), CMOC (03993.HK) and ZIJIN MINING (02899.HK) dropping between 2.9% and 5.7%. Taiwans market retreated from a record high after four consecutive sessions of gains, falling 449 points or nearly 1% to 46,010. TSMC, MediaTek and Delta Electronics declined between 0.8% and 1.2%, Largan Precision fell 2.6%, and Hon Hai dropped sharply by 3.6%, while Wistron bucked the trend with a 1% gain. South Korean equities resumed trading after a holiday and pulled back from a record closing high. The index once fell 2.5% to an intraday low of 8,577 before narrowing losses to 1.1% at 8,709. Samsung Electronics slipped 0.8%, and SK Hynix fell 2.7%. Reports said the Bank of Japan is considering a rate hike in June and may raise rates again in the second half of the year. The Nikkei index retreated from its record high, falling 981 points or 1.4% in the afternoon to 67,420. Heavy machinery stocks outperformed, with Mitsubishi Heavy Industries and IHI Corp rising 4.4% to 5%. SoftBank, which had surged earlier, slumped 11.4% amid weakness in global tech shares. Apple supplier Murata Manufacturing fell 5.4%. Other Asia-Pacific markets were mixed. Singapores Straits Times Index retreated 1.4% from its record high to 5,068. Australias ASX 200 and New Zealands NZX 50 fell 1.3% and 0.3% respectively late in the session. Indias BSE Sensex declined 0.3%, while the Nifty 50 edged down 0.1%. Vietnams Hanoi index, which had risen for multiple sessions, plunged 3.9%, and the Ho Chi Minh index slipped 0.1%. Thailands SET 50 rose 0.7% after reopening from a holiday. Malaysias KLCI gained 0.8%, while the Philippines PSEi fell 0.8%. Indonesias IDX extended losses, dropping 3.9% to 5,709, the lowest level since December 2020. The Indonesian rupiah historically weakened past 18,000 per USD1 to a record low, last at 18,042.5 per USD1, down 0.4%. Felix Darmawan, economist at BCA Sekuritas, said the rupiahs weakness has exacerbated capital outflows and that breaking key levels could trigger more defensive positioning. Indonesias central bank recently reiterated it will deploy all available policy tools to ensure orderly market mechanisms and maintain ample foreign exchange liquidity to support financial market stability. In MSCIs latest Global Standard Index review announced on May 12, 2026, several major Indonesian stocks were removed. Analysts had earlier predicted the reweighting of heavyweight stocks could trigger further sell-offs in the Indonesian market. Prasetya Gunadi, Head of Research at Samuel Sekuritas Indonesia, said Indonesias weighting in the MSCI Emerging Markets Asia Index may decline from 0.9% to 0.8%, potentially leading to foreign outflows of between USD1 billion and USD1.7 billion. Darmawan added that even if the MSCI adjustment is not the primary driver of the downturn, it increases uncertainty as investors reassess their positions. (da/u) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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