Asia Roundup
FTSE Russell Confirms Vietnam’s Emerging Market Status
FTSE Russell confirmed it will upgrade Vietnam to emerging market status from frontier status in September based on an interim review, the final seal of approval for the long-awaited move, Reuters reported.
Vietnam will be added to FTSE Russell’s global equity indices beginning on 21 September in phases that will continue into 2027.
China Corruption Probe Highlights Local Debt Strains
An investigation into a senior transport official in China’s Guizhou province has delayed subsidy payments to infrastructure projects, disrupting loan servicing and highlighting vulnerabilities in local government-linked debt, Caixin reported.
Zhang Yin, a former head of Guizhou’s transportation department, is under investigation for suspected corruption, the province’s top anti-graft agency said.
Asian Coal Bonds Beat Peers as Iran War Triggers Energy Rethink
An unprecedented global energy crisis is driving Asia back to coal, in a pivot that’s generating a surprise boon for miners of the dirtiest fossil fuel and their bondholders, Bloomberg reported.
Notes of coal miners and related entities in the Asia Pacific, the destination of roughly 80% of the crude oil that transits the Strait of Hormuz, have returned 0.3% since the war started, according to prices compiled by Bloomberg. That compares with a 0.4% loss on debt of peers outside the region and a 2.4% slump in a broader gauge of global corporate bonds.
Indonesia Roundup
FTSE Keeps Indonesia’s Market Status Amid Ongoing Reforms
FTSE Russell will “closely monitor” Indonesia’s capital market reforms after the postponement of a March index review of the nation’s equities, Bloomberg reported.
The index compiler said it is not considering Indonesia for inclusion on the watch list, and the country’s Secondary Emerging market status remains unchanged.
Indonesia Finalizes Restructuring Plan for China Train Debt
Indonesia said that it had finalized its debt restructuring plan for the China-backed Jakarta-Bandung bullet train or Whoosh, Jakarta Globe reported.
The fund’s chief operating officer, Dony Oskaria, told reporters that the government would make a public announcement within two weeks on what they had in mind to tackle the problem.
Indonesia’s FX Reserves Hit Two-Year Low on Rupiah Defense
Indonesia’s foreign exchange reserves fell for a third straight month in March to the lowest level in nearly two years as the central bank stepped up market intervention to stabilize the falling rupiah, Bloomberg reported.
Foreign reserves declined $3.7 billion to $148.2 billion, the lowest since July 2024, due to Bank Indonesia’s steps to stabilize the currency and the government’s external debt repayments, the central bank said in a statement. The stockpile shrank by $8.3 billion in the first three months of this year.
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