ETFs tracking Indonesia were the steepest decliners in Tuesday’s global equity sell-off triggered by fears the U.S. could take military action against Syria.
Market Vectors Indonesia Small-Cap (NYSEArca: IDXJ) was the worst-performing unleveraged ETF on Tuesday morning with a loss of 8% at one point.
Market Vectors Indonesia Index ETF (NYSEArca: IDX) and iShares MSCI Indonesia (NYSEArca: EIDO) were both off more than 5%. EIDO is down over 40% from its 52-week high. [Indonesia ETF in Five-Day Crash as Volume Spikes]
The Bank of Indonesia on Tuesday said it will convene an additional monthly board of governors’ meeting on Thursday. An evaluation of latest monetary, economic and banking conditions will be discussed at the supplementary meeting, it said.
Indonesian ETFs have been hit by inflation worries, a widening current account deficit and expectations the Federal Reserve will taper its bond purchases. Tuesday’s global risk-off bout was particularly tough on emerging market ETFs.