Indonesian shares hit a two-week low on Tuesday because of worries about inflation and the interest rate outlook but still ended with slim gains on the month, while other markets in the region were mixed on the day. Indonesia's main share index ended 0.6 percent lower at 3,081.88. Its losses extended into a third session from a record high of 3,150.16 last week.
Bank Indonesia was expected to keep the rate at 6.5 percent on Friday, according to John Teja, a director at Jakarta-based Ciptadana Securities. The Indonesian rupiah shed nearly 0.4 percent to 9,045 per dollar, its lowest level in just over a month. Jakarta suffered net outflows of $19.2 million on the day, according to Thomson Reuters data. Its inflows for August fell by half to $227 million from July, with the index adding 0.4 percent on the month, the smallest rise since May.
Among losers, coal mining company PT Adaro Energy Tbk fell 4 percent. Foreign investors sold Adaro after it reported a first-half drop in profit, a Jakarta-based dealer said. The MSCI Asia ex-Japan index had fallen 1.15 percent by 1008 GMT. Singapore fell 0.2 percent, but Thailand rose 0.4 percent, with foreign investors buying a net 2.4 billion baht ($76.73 million) on the day. The Philippines gained 0.2 percent on resuming trade after a market holiday on Monday.
Vietnam climbed further, adding 2.4 percent to a two-week high on buying by institutional investors, according to Nguyen Quoc Khanh, a broker at Techcombank Securities. Thailand racked up a 6.7 percent gain in August, Southeast Asia's best-performing bourse on the month, ahead of Malaysia's 4.5 percent, the second best. Malaysia was shut on Tuesday for a holiday.
The rally this month pushed Thailand and Malaysia into overbought terrain, according to one indicator. The Thai SET index's 14-day relative strength index (RSI) was at 78.7 at the close on Tuesday, with Malaysia's at 79.89 at the close on Monday. Others in the region were below 70.
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