KONTAN.CO.ID - SINGAPORE. Indonesia's rupiah fell to an eight-month low on Monday and led losses among major Southeast Asian currencies after the country on Friday unexpectedly announced a ban on exports of palm oil, a major trade item.

The rupiah weakened 0.7%, on track for its steepest drop since August 2021. The country's benchmark stock market index <.JKSE> pared early losses to be down 0.1%, weighed down by some of Indonesia's top palm oil companies. Read full story

Indonesia's ban on palm oil exports, which will take effect on April 28, surprised the global edible oils market.

The country's exports of palm oil and its derivatives are usually worth $3 billion a month, according to estimates by some analysts.

"The ban will likely push up global food costs and will last until the ... government deems domestic supply as stable," analysts at ING wrote.

Baca Juga: Shanghai Fences Up Covid-Hit Areas, Fuelling Fresh Outcry

Shares of companies focused on palm oil in rival exporter Malaysia jumped as futures for the product rose to their highest since early March.

However, share price gains on a handful of such companies were not enough to stop a 0.6% fall in the country's benchmark index.

Indian stocks fell by 1% as prospects of aggressive interest rate rises by the U.S. Federal Reserve hit investors' appetite for risky assets.

Elsewhere, Singapore stocks were down by 0.2% after the country's key gauge of consumer prices rose in March by its fastest pace in a decade, driven particularly by food and services prices.

Shares in Taiwan dropped more than 2%, to their lowest level since October last year, as the island saw a rise in COVID-19 cases.

Baca Juga: Indrawati Says Palm Oil Export Ban Will Hurt Other Countries, But Necessary

"Although the authorities are trying to shorten isolation periods, this should still impact retail sales, manufacturing and exports. This could put extra pressure on the semiconductor supply chain." ING analysts said.

The country is also due to disclose its March industrial production data later in the day.

South Korean shares fell steeply, broadly tracking a Friday slump on Wall Street caused by surprise earnings news and increased certainty around aggressive near-term interest rate rises.

Editor: Anna Suci Perwitasari