A devalued yuan makes it necessary for other Asian markets to let their currency weaken in order to maintain competitive export products. Another problem is that the weaker yuan makes it more expensive for China to import commodities (in US dollars). This could lead to reduced demand for commodities from China, hence putting more pressure on global commodity prices.

At the start of the week it was reported that China's manufacturing and services sectors are contracting or decelerating, giving rise to concern about China's hard landing and the impact of this landing on global economic growth.

Some investors may also have become nervous because of North Korea's confirmation that it tested a hydrogen bomb on Wednesday (06/01). Meanwhile, geopolitical and diplomatic turmoil continue between Saudi Arabia and Iran after prominent Shiite Saudi cleric Nimr al-Nimr was executed and the Saudi embassy in Tehran set on fire by protesters.

Indonesia's benchmark Jakarta Composite Index was down around 1 percent to 4,563.53 points by 10:30 am local Jakarta time. Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.60 percent to IDR 13,946 per US dollar.

Indonesian Rupiah versus US Dollar (JISDOR):

| Source: Bank Indonesia

Before the forced stop, China's Shanghai Composite Index was down 7.32 percent, while Japan's Nikkei 225 Index was down 1.78 percent, Hong Kong's Hang Seng Index fell 2.32 percent, and Singapore's Straits Times Index was down 1.88 percent around 10:30 am local Jakarta time on Thursday (07/01).