Global Market: Indonesia stocks attract bargain hunters as AI rally loses steam

Indonesian equities are attracting bargain hunters after heavy selling pushed the Jakarta benchmark down about 28% year-to-date, with a 10% rebound in July outperforming some tech-heavy Asian markets. Foreign outflows have exceeded $4 billion this year amid MSCI review uncertainty, fiscal concerns, and an 8% year-to-date drop in the rupiah, but more than half of active funds tracked by Copley remain overweight Indonesia. Investors are also rotating into other emerging markets including India and China, limiting Indonesia's unique appeal ahead of MSCI's November decision.