India’s rupee fell to an all-time low of 63.23 per dollar and the Sensex index dropped 1.6%. Foreigners sold a net $3 billion of Indian stocks and bonds in July amid the slowest growth in a decade in Asia’s third-largest economy, according to data compiled by Bloomberg.
The Jakarta Composite Index sank 5.6%, the most since October 2011 and the biggest drop among equity indexes tracked by Bloomberg worldwide, after Indonesia’s current- account deficit widened to a record. The rupiah fell to as low as 10,608 per dollar, the weakest level since 2009, prices from local banks compiled by Bloomberg show.
Foreign institutional investors sold a net $85.4 million of Indonesian stocks on Friday, the biggest outflow since July 8, exchange data compiled by Bloomberg show. The economy grew less than 6% last quarter for the first time since 2010.
“Indonesia has seen a gradual but persistent bout of bad news, with slowing growth, quickening inflation and then the current-account deficit,” said Leo Rinaldy, a Jakarta-based economist at PT Mandiri Sekuritas, a unit of the nation’s largest lender.
Thailand’s SET Index dropped 3.3%, the most in two months, after a report showed the economy unexpectedly shrank in the second quarter, pushing the country into a recession, and the government cut its growth forecast. The baht weakened 0.4%, the biggest decline in two weeks.
Soybeans climbed 3.5% on speculation dry U.S. weather may curb yields. Corn jumped 4.8%. More than 120 analysts, traders, farmers and processors will inspect farms in Ohio, Indiana, Illinois, Iowa, Nebraska, South Dakota and Minnesota over the next four days as part of the 21st annual Pro Farmer crop tour.
West Texas Intermediate oil was down 0.3% at $107.10 a barrel, halting a six-day rally, as the threat to production from a storm in the Gulf of Mexico dissipated. Brent crude slipped 0.5% at $109.88 a barrel. Goldman Sachs Group Inc. raised its price forecasts for Brent, predicting an increase to about $115 in the “very near term” amid supply disruptions in Libya and Iraq.
U.S. natural gas futures for September rose to their highest level of the month, climbing as much as 4% to $3.50 per million British thermal units on the New York Mercantile Exchange, on speculation that late August heat will stoke demand for power-plant fuel.