(Aug 19): Indonesia's rupiah and stocks were little changed on Wednesday after the central bank held interest rates steady, while most emerging Asian markets drifted lower as rising oil prices and elevated US bond yields dampened investor appetite for risk.

Bank Indonesia (BI) held its benchmark interest rate unchanged for a second straight meeting and retained its 2026 growth forecast, delivering its first policy decision under interim governor Destry Damayanti after the surprise resignation of Perry Warjiyo last month.

"A firm 2Q growth report and recent stability in the rupiah back BI's decision to leave the benchmark rate on hold," said DBS Bank economist Radhika Rao.

"Policy risks, at this juncture, are more external focused as the currency and bond market remain susceptible to geopolitical developments on elevated global oil as well as crack spreads."

The widely expected decision elicited little reaction in financial markets, leaving the rupiah and local stocks largely unchanged.

The rupiah traded flat on the day, while stocks in Jakarta fell 0.6%, extending losses to 25.9% so far this year and ranking it among the region's worst-performing stock markets.

The MSCI Emerging Asia equities index fell 2%, tracking overnight losses on Wall Street as investors remained cautious after the yield on the US 30-year Treasury touched its highest level in nearly two decades this week.

Higher global yields typically weigh on emerging market assets by making developed-market debt more attractive, while rising crude prices threaten to increase inflation and import costs across many of Asia's energy-dependent economies.

South Korean stocks led regional declines, with the Kospi dropping 5.8% to a week low.

Memory chip makers bore the brunt of the selling, with Samsung Electronics falling as much as 8.2%, while SK Hynix dropped as much as 10.6%.

Taiwan's benchmark fell 1.3% with Taiwan Semiconductor Manufacturing losing as much as 1.9%.

On the currency front, the MSCI Emerging Market Currency Index edged 0.3% higher, supported by a 1% gain in the South Korean won.

The Singapore dollar rose around 0.1%, while the Philippine peso hovered near the record low of 61.952 reached earlier in the day and was last down 0.1%. The Malaysian ringgit slipped 0.1%, the Taiwan dollar fell 0.2% and the Thai baht eased marginally.

The US dollar traded near multi-month lows against major peers as investors awaited minutes of the Federal Reserve's latest policy meeting later in the day for fresh clues on the outlook for US interest rates.

Uploaded by Magessan Varatharaja