Indonesia Slides 3.6% After MSCI Downgrade Warning, South Korea Gains 1.8%

Indonesia's market fell 3.6% after MSCI warned it would downgrade the country from its emerging‑market basket. South Korea rebounded 1.8% from last week's losses, even as investors worry about excessive spending on artificial intelligence. Taiwan slipped 0.6% amid the same regional sentiment. Overall, Asian equities showed mixed moves, with gains in Korea offset by drops in Indonesia and Taiwan. ## Context MSCI indexes guide many global fund allocations, so a downgrade warning can trigger capital outflows. Concerns over AI spending reflect fears that hype may outpace real returns, affecting market confidence.