Asia's tech-heavy markets sank on Friday as fear of increased regulatory scrutiny and a slowdown in AI build-out unleashed the steepest fall in US stocks since the tariff-triggered "Liberation Day" rout a year and a half ago.

Analysts question whether the current approach will deter future misconduct or simply lead wrongdoers to treat fines as just part of the cost of doing business.  

S&P 500 slipping 0.5 percent as tech sector earnings weighed on investor confidence, even as data showed US manufacturing activity picked up in October amid strong domestic demand.

The Indonesia Stock Exchange (IDX) officially began excluding stocks with high shareholding concentration (HSC) from its benchmark index calculation on Monday as part of broader efforts to improve market quality.  

Foreign fund outflows and uncertainty over Indonesia’s MSCI classification pushed the Indonesian benchmark stock index close to the 5,000-point mark, while global concerns over AI spending added to selling pressure.  

Tech firms diverged Thursday with a mixed bag of results for some of the AI sector's big beasts tempering the recent spurt of optimism amid growing anxiety about companies' investment and debt.

Yields on medium- and long-term government bonds have increased significantly in just two weeks as demand nosedived after MSCI announced a possible reclassification of Indonesian stocks. The 10-year yield now sits at a four-year high, while the rupiah is trading near its all-time low.  

Technology firms surged across Asia on Wednesday after blockbuster earnings from chip giant SK hynix helped boost optimism in the AI trade ahead of results from Wall Street titans Microsoft and Alphabet.

The Indonesia Stock Exchange (IDX) is stepping up its capital market surveillance by preparing a mechanism to publicly announce and immediately investigate any indications of manipulative trading, but consistent and transparent execution will be crucial to reviving investor confidence.  

Major currencies traded in tight ranges on Monday to begin a busy week of central bank decisions and corporate earnings, while a pullback in oil prices and Treasury yields weighed on the dollar.

Oil prices rose to their highest levels since late April on Friday, with benchmark crude contract Brent North Sea climbing above US$116 a barrel as the Middle East conflict raged on.

Asian shares fell on Friday as concerns over the enormous funding needs of AI hammered tech and led to the biggest daily rally in Treasuries in more than three years, with investors fleeing to sovereign bonds and safe-haven currencies.

MSCI ratcheted up the pressure on Jakarta by announcing that it could demote Indonesia's equities to "standalone" market status, claiming the country had not done enough to crack down ​on coordinated trading practices in its stock market.

Asian markets rallied Wednesday as tech firms enjoyed a much-needed rebound, with investors taking heart from upbeat earnings that lifted sentiment ahead of a crucial reporting season.

In response to the moves, the IDX Composite climbed more than 5 percent on Tuesday, rebounding from a nearly 15 percent drop over Friday and Monday.

Jakarta's benchmark index rose 3 percent on Tuesday, after hitting a six-year low in the previous session as the world's worst-performing stock market this year dropped 14.8 percent over Friday and Monday.

Crude prices resumed their climb as markets weighed an executive order from US President Donald Trump that waived some sanctions and tariffs on Russian energy.

Jakarta's benchmark stocks fell over 5 percent in early trading on Monday after plunging 11.6 percent on Friday, as the world's worst performers reeled from index provider MSCI saying it was considering shifting Indonesia to "standalone" status from its current "emerging markets" mantle.

Analysts say Friday’s stock market rout was driven by panic-selling following MSCI’s consideration to reclassify Indonesian equities in its global indexes, pushing cumulative foreign outflows for the year to a historical high of Rp 88.19 trillion.  

Indonesia’s commodity supply chains, which serve both domestic and global markets, are ready to adopt sustainable practices, and industry players are being encouraged to recognize their importance.

MSCI’s latest proposal to reclassify Indonesia as “standalone market” is a fresh blow for the Indonesia Stock Exchange (IDX), which has observed its benchmark index moving downward since the global index provider first issued its transparency concerns in January.

MSCI said investors ​had raised concerns about opaque ownership structures, concentrated shareholdings and suspected ​coordinated trading, which it said undermined the market's investability.

Asian stocks plunged Thursday as technology firms suffered another rout after forecast-topping US inflation data fueled expectations the Federal Reserve would further increase interest rates.

Private bankers and asset allocators told Reuters that Asian investors are increasingly seeking asset diversification compared to their usual allocations to equities and bonds.

Asian shares inched higher on Wednesday as those related to artificial intelligence found respite after a selloff, while any gain was tempered by elevated oil prices and caution ahead of United States inflation data later in the global day.

Japanese pensions, Indonesia's sovereign wealth fund looking to add exposure to hedge funds

Seoul, Tokyo and Taipei led losses across Asian stock markets on Tuesday as technology firms plunged on fresh worries about the outlook for the AI investment boom, with traders preparing for a crucial earnings season and release of key US data.