* Rupiah on track for worst session since September 9
* MSCI EM Asia gauge reverses course to trade lower
* Taiwan stocks fall sharply after scaling record high
* KOSPI hits another all-time high
By Rajasik Mukherjee
April 23 (Reuters) - The Indonesian rupiah fell sharply to a record low
of 17,315 against the U.S. dollar on Thursday, a day after the central bank said
it would go all out to defend the "undervalued" currency hammered by capital
outflows.
The rupiah fell 0.7%, heading for its biggest drop since September 9,
pressured by capital outflows on concerns over fiscal sustainability, capital
market transparency issues, and risk-off sentiment caused by the Iran war.
"The rupiah remains under pressure amid concerns around fiscal
sustainability and MSCI-related uncertainty - risks that are unlikely to
dissipate in the near term," ING analysts said on Wednesday after Bank Indonesia
(BI) kept its interest rate unchanged.
"Low oil reserves, limited FX buffers, a wider current account deficit, and
seasonal dividend outflows are likely to keep the IDR trading on the weaker
side, leaving BI with limited room to defend the currency through intervention."
The rupiah has fallen more than 3% this year, and is among the
worst-performing currencies in emerging Asia.
Equities across emerging Asia wavered in early trade. The MSCI EM Asia gauge
erased early gains to trend lower, as Taiwan stocks
reversed sharply, falling 1.7% after rising as much as 2.8% earlier in the day
to a record high.
South Korea's KOSPI index rose 0.8% to another all-time peak, led by
heavyweight chipmakers Samsung Electronics (SSNLF) and SK Hynix,
both of which gained more than 3%.
In Southeast Asia, stocks in Singapore fell 1% to their lowest since
April 7, while those in Indonesia slid 0.5% to an eight-session low. The
Philippine peso weakened to 60.473 a dollar, the lowest since April 6.
HIGHLIGHTS:
** Philippine c.bank to hold rates, but decision on a knife edge - Reuters
poll
** Saudi Arabia, Philippines to join JPMorgan emerging market bond index in
2027
** Argentina's Milei proposes elections overhaul, latest effort to shrink
state
** South Korea's Q1 GDP growth roars past market on booming AI-driven chip
demand
Asia stock indexes and currencies at 0253 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS STOCKS
DAILY % YTD %
Japan -0.02 -1.79 -1.06 17.11
China -0.02 +2.30 -0.21 3.24
India +0.00 -4.18 0.00 -6.70
Indonesia -0.72 -3.61 -0.64 -13.34
Malaysia -0.28 +2.40 0.50 2.32
Philippines -0.63 -2.76 -0.21 -1.26
S.Korea -0.13 -2.89 0.32 52.78
Singapore -0.08 +0.73 -0.90 6.71
Taiwan +0.05 -0.27 -0.57 30.03
Thailand -0.31 -2.80 - -
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Subhranshu Sahu)
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