that higher share prices don’t always mean supportive cross-border flows.
Why should I care?
For markets: Stocks can rise while fx flashes caution.
This was a classic emerging-markets split: equities rallied on global mood, while currencies reflected funding stress. A weaker rupiah can lift imported costs, complicate rate decisions, and ultimately reshape profit expectations – especially for firms with dollar expenses or debt. When geopolitics is moving energy prices, that gap between stocks and FX can widen fast.
The bigger picture: Energy shocks travel quickly through Asian economies.
The IMF has flagged Asia’s heavy reliance on Middle East fuel as a key vulnerability, so oil and shipping disruptions can hit growth and inflation at the same time. That’s why even mixed domestic data can take a back seat to energy headlines. It also keeps policy credibility in the spotlight as regulators try to shore up financial stability while external shocks do the heavy lifting.
