Asian equities slide as Middle East tensions and local factors press markets

Indonesia’s Jakarta Composite Index (IHSG) fell 1.28% on June 29, closing at 5,820, and deepened to a 3.05% drop on June 30, ending the month down 7.9% amid a weak rupiah, worries about a possible MSCI downgrade and lingering US‑Iran tensions that kept foreign investors cautious. Trading volume also fell sharply.

In Thailand, the Stock Exchange of Thailand (SET) ended a two‑day rally with a 1.04% decline, trading around the 1,540‑point level, as technology stocks slipped and the same geopolitical uncertainty weighed on sentiment.

South Korea’s market displayed mixed signals. The KOSDAQ surged about 6% on AI‑ and semiconductor‑related gains, while the main KOSPI slipped 0.2% on Monday as investors reacted to renewed US‑Iran cease‑fire doubts and higher oil prices. Analysts also highlighted the National Pension Service’s expected rebalancing of domestic equities, which could trigger a multi‑trillion‑won sell‑off, and noted that the domestic ETF market has for the first time overtaken the Kosdaq in market‑capitalisation terms.

Across the region, the combination of Middle‑East geopolitical risk, currency pressures and local institutional moves has kept equity markets on the defensive.