Indonesian Stocks Plunge 7% After MSCI Warning on Investability

Indonesian stocks tumbled after MSCI Inc. raised concerns about their investability and warned of a potential downgrade to frontier-market status.

The benchmark Jakarta Composite Index closed 7.4% lower on Wednesday, the biggest one-day slide in over nine months. The gauge plunged as much as 8.8% earlier in the day to trigger a 30-minute market halt. The selloff came after MSCI said it would immediately pause some index changes, including additions, until regulators address concerns over tightly-held ownership of listed firms.