Why did Indonesian Stocks & Rupiah Weaken on Friday?

What were the main factors that caused the decline of Indonesian stocks today?

Firstly, global investors are concerned about an American doctor having tested positive for Ebola. Market sentiments were down on fears that the Ebola disease has spread. This case has impacted negatively on stocks worldwide. Secondly, the stock index of Singapore was down after four consecutive days of gain on the release of weaker-than-expected manufacturing data (signalling a 1.2 percent contraction in September 2014). Thirdly, the market is still concerned about economic growth in China, the world’s largest economy, as the country’s 7.5 percent annual growth target for full-year 2014 may not be achieved. Due to uncertainty about China’s economy, some market participants engage in profit taking in Asia. Lastly, newly inaugurated President Joko Widodo has not yet released the composition of his new cabinet. This had led to some speculation about political uncertainty.

Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.26 percent to IDR 12,065 per US dollar on Friday (24/10).

| Source: Bank Indonesia