Asian stocks tanked on Wednesday, with a record-breaking market crash in Seoul, as investors dumped crowded bets on chipmakers on worries a widening Middle East war will drive an oil shock that raises inflation and delays interest rate cuts.

Multiple Indonesian local media reported on Wednesday that Fitch Ratings has downgraded Indonesia's sovereign credit rating outlook to negative from stable.

The dollar rallied to a three-month high in early trading in Asia on Wednesday, with investors retreating from the euro as the growing conflict in the Middle East sparked fears of a sustained rise in energy prices.

Brent crude futures LCOc1 were at $80.89 a barrel, up $3.15, or 4.1 percent, by 0745 GMT. On Monday, the contract surged to as high as $82.37, its highest since January 2025, though it pared those gains to settle 6.7 percent higher.

Investors are closely watching developments around shipping in the crucial Strait of Hormuz which was disrupted by retaliatory Iranian attacks.

Analysts do not rule out the possibility of oil prices hitting US$100 a barrel, a level last seen at the start of the war in Ukraine.

Brent crude jumped 10 percent to about US$80 a barrel over the counter on Sunday, oil traders said, while analysts predicted that prices could climb as high as $100 after US and Israeli strikes on Iran plunged the Middle East into a new war.

Asian stocks advanced on Thursday after upbeat earnings from Nvidia soothed concerns over AI-driven disruption and rising costs, while the yen was in the doldrums, bogged down by a murky rate outlook in Japan.

Asian stocks stabilized after a wobbly start on Tuesday as a fresh AI-linked selloff on Wall Street rattled investors, with sentiment also hurt by heightened anxiety over US President Donald Trump's tariff policy and geopolitical tensions.

The IDX, along with the OJK, has announced a new policy to double the minimum free float requirement to 15 percent from 7.5 percent at present, using a case-by-case approach in addition to assistance for listed firms for gradual implementation by March.

Recent identification of eight prospective rare earth element mining deposits may add non-Chinese supply options for global players, but will not impact market that is heavily centered on Beijing, due to lack of supply and processing ability.  

The dollar held gains on Tuesday as markets awaited signals, expected later this week, about the potential timing of rate cuts by the Federal Reserve.

Asian markets were subdued on Monday, as the extended Lunar New Year holiday approached and Japan reported lackluster economic growth.

Asian shares retreated from record highs on Friday as worries about shrinking margins in the tech sector hit the likes of Apple, driving investors into safe-haven bonds ahead of key US inflation data.

Gold prices dipped on Thursday, as the U.S. dollar firmed after stronger-than-expected January jobs data dented expectation for near-term interest rate cuts, while investors awaited inflation data due on Friday for more monetary policy cues.

Danantara CEO Rosan Roeslani pointed out that it is common practice for sovereign wealth funds (SWFs) to hold stakes in bourses, typically ranging from 15 percent to 30 percent.

Bonds jumped and a rebound in stock markets slowed down on Wednesday after softer-than-expected US retail sales figures, while a rally in the yen has extended and might be beginning to signal a shift in investor thinking since Japan's election.

About US$120 billion has been wiped from the benchmark Jakarta Composite after larger rival MSCI warned last month the country risked a downgrade to frontier status.

Nikkei jumped 4.2 percent to all-time highs as the government's decisive majority after the election clears the way for more spending and tax cuts.

The benchmark Jakarta Composite Index lost 2.5 percent while the rupiah dropped as much as 0.37 percent to 16,888 per dollar, its lowest since January 22 and down 1 percent for the year.

Global stocks extended losses into a third day on Friday as a selloff on Wall Street intensified, leaving investors dazed as wrenching volatility gripped precious metals and cryptocurrencies.

Asian stocks fell Thursday to track more losses on Wall Street, where tech firms were again under pressure as fears over vast AI investments and extended valuations gained momentum.

Higher palm oil imports by India, the world's largest buyer of vegetable oils, could help reduce inventories in top producers Indonesia and Malaysia, supporting benchmark Malaysian palm oil futures, while pressuring US soy oil futures.

Stocks rallied while precious metals and crude rebounded as some stability returned Tuesday following a rout fueled by a perfect storm that sent shivers through across Asian trading floors.

Indonesian shares plunged again on Monday, showing that a leadership shakeup at stock market institutions and government assurances about planned reforms have not allayed investor concerns.

Oil prices tanked Monday on easing US-Iran tensions while precious metals swung wildly following last week's dollar-fueled collapse sparked by Donald Trump's hawkish pick to lead the Federal Reserve.

Asian stocks sank Friday amid fresh worries over vast investments in artificial intelligence. Jakarta seemed to be stabilizing after a rout over the previous two days sparked by index compiler MSCI calling on regulators to look into ownership concerns.