Indonesia is leading declines in Asian markets. By 11:00 am local Jakarta time on Wednesday (14/09) the benchmark Jakarta Composite Index was down 1.53 percent to 5,135.72 points, while the Indonesian rupiah had depreciated 0.54 percent to IDR 13,239 per US dollar (Bloomberg Dollar Index).

Despite China's upbeat macroeconomic data (released yesterday), which includes higher-than-estimated industrial production and retail sales in August, emerging markets did not get a significant boost from these data. This may be related to investors' expectation that 'good news' can make central banks decide not to add stimulus to markets. Secondly, investors seem to focus much more on the Federal Reserve's monetary policy than on China's economy (fears of China's hard landing have already been waning).

US stocks tumbled on Tuesday (13/09) on concerns about the global economy, a looming Fed Funds Rate hike, and falling crude oil prices. The Dow Jones industrial average fell 1.4 percent, the Standard & Poor’s 500 index dropped 1.5 percent, while the Nasdaq composite shed 1.1 percent.

Oil prices fell heavily, as much as 3 percent, on Tuesday (13/09) responding to a bearish-tilted monthly OPEC report and the IEA's warning of slowing oil demand. On Wednesday (14/09), however, crude oil prices rebounded.

Bank Indonesia's benchmark rupiah rate (the Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.59 percent to IDR 13,228 per US dollar on Wednesday (14/09).

Indonesian Rupiah versus US Dollar (JISDOR):

| Source: Bank Indonesia