This is the second EM index-integrity shock in under a year (after the 2024 index-consultation scares in Korea and Turkey), signaling that passive flows are becoming a macro risk factor rather than a stabilizer. With BTC dominance elevated and altcoins already underperforming, capital rotating out of EM equities typically parks in USD, gold, and increasingly BTC/stablecoins as a 'digital dollar' hedge in Asia.

Indonesian stocks

Indonesian stocks extended a selloff to their lowest level since 2020 after MSCI warned the country risks losing its emerging-market status.