Oct. 27 (Bloomberg) -- Indonesia’s rupiah gained, erasing its earlier loss and snapping a two-day decline, as Asian stocks rose after European leaders agreed to expand a regional bailout fund, boosting demand for emerging-market assets.
The MSCI Asia Pacific Index of regional stocks climbed as European leaders and bondholders agreed on a write-down of Greek debt and boosted the region’s rescue fund to 1 trillion euros ($1.4 trillion) following yesterday’s summit. Overseas investors bought $93 million more Indonesian shares than they sold this week as of yesterday, according to exchange data.
“There is some optimism from Europe,” said Bambang Eko Joewono, the Jakarta-based head of the global-markets division at PT Bank UOB Indonesia. “Funds continue to flow into Indonesian stocks.”
The rupiah advanced 0.1 percent to 8,865 per dollar as of 3:50 p.m. in Jakarta, according to prices from local banks complied by Bloomberg. It earlier declined as much as 0.2 percent. Bank Indonesia is selling dollars when needed to ease volatility in the currency, Deputy Governor Hartadi Sarwono said Oct. 7.
The yield on government’s 8.25 percent bonds due July 2021 fell one basis point, or 0.01 percentage point, to 6.40 percent today, according to the Inter-Dealer Market Association.
Foreign ownership of the nation’s sovereign debt rose to 219 trillion rupiah ($24.7 billion) as of Oct. 24, an increase of 1 trillion rupiah from the end of last month, according to data from the finance ministry’s website.
--Editors: Greg Ahlstrand
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