EMERGING MARKETS-Indonesian stocks fall to over 3-year low, US tariff concerns linger

By Sameer Manekar

March 24 (Reuters) - Indonesian stocks plunged 4% on Monday and its currency hit a three-week low as traders sold out on concerns around the country's fiscal health, with risk appetite subdued by the threat of steep U.S. tariff hikes on the horizon.

Jakarta's equity index .JKSE fell 4.7% to its lowest since August 20, 2021, led by a sharp selloff in resources and banking stocks, but avoided a 5% breach that would have triggered a 30-minute trading halt - a scenario it faced last Tuesday.

Chemicals firm Chandra Asri Pacific TPIA.JK and copper-gold miner Amman Mineral Internasional AMMN.JK lost 4% and 11%, respectively, while Bank Central Asia BBCA.JK shed as much as 3.5%.

IG market strategist Yeap Jun Rong said investors continue to lose confidence in the country's economic direction under President Prabowo Subianto, citing concerns of fiscal sustainability on his populist spending measures.

"These worries are further compounded by ongoing uncertainties surrounding U.S. tariffs, which saw investors less prone to taking on risks for now, which may exacerbate any sell-off," he said.

Assets in Southeast Asia's largest economy have been hit hard over the past few weeks by concerns over the government's fiscal strategy and growth prospects and rumours of the finance minister's resignation.

The rupiah IDR=, the second worst-performing currency in Southeast Asia, slipped to a three-week low, while yield on the 10-year benchmark bonds ID10YT=RR jumped to a nine-week high to 7.2180%.

The yield on the 10-year bond "could stay above 7.00% in the near term as the market demands larger political and fiscal risk premiums, until a clear sign of stability emerges", analysts at Maybank said in a note.

The MSCI gauge of emerging Asian equities .MIMS00000PUS was largely unchanged, while an index of emerging market currencies .MIEM00000CUS ticked lower.

Though the markets seemed to be taking a breather, traders and investors were keenly awaiting any updates on U.S. President Donald Trump's plans for global reciprocal tariffs from April 2.

Analysts at Citi said in a note last week they "expect a meaningful tariff blow to part of EM on April 2nd, which could expose growth to vulnerabilities in EM Asia".

In Turkey, the lira TRYTOM=D3 ticked higher in Asia trading hours following a drop to a record low last week after authorities detained Istanbul mayor Ekrem Imamoglu, the main political challenger to President Tayyip Erdogan.

In Singapore, stocks .STI ticked higher while the local dollar SGD= was largely unchanged ahead of the monthly inflation print which is widely expected to show both headline and core measures edged lower.

The Monetary Authority of Singapore $(MAS)$ will hold its monetary policy meeting next month. After loosening its settings for the first time since 2020 in January, analysts are split on whether the MAS will follow it up with another dovish move.

In Thailand, the benchmark index .SETI was largely unchanged while the baht THB=TH hit a two-week low.

Malaysia's ringgit MYR= weakened by 0.3%, while the Philippine benchmark index .PSI fell 0.7% after a system connectivity issue delayed the market open.

HIGHLIGHTS:

** Thai PM faces censure motion as opposition takes aim at father's influence

** China's central bank says it will boost forex market resilience

** Sinopec's 2024 net profit drops 16.8% due to falling oil prices, NEVs

(Reporting by Sameer Manekar in Bengaluru; additional reporting by Ankur Banerjee in Singapore; Editing by Christian Schmollinger)

((Sameer.Manekar@thomsonreuters.com;))