This update was written automatically with AI from market data and news wire reports, and published without review by a person.
Key Takeaways
- Indonesian Vice President Gibran Rakabuming Raka formally resigned on November 12, 2026, following a Supreme Court ruling that invalidated his educational credentials.
- Taiwan’s TAIEX index slid 1.2%, reversing earlier gains as heavyweights like TSMC (2330) faced continued pressure following a broader 4.5% plunge earlier in the week.
- Japan's 5-year bond auction saw firmer demand than its 12-month average, signaling improved investor confidence in the JGB market despite rising yields.
- Fitch Ratings maintains stable outlooks for APAC gas utilities, asserting that higher procurement costs are unlikely to strain credit ratings due to robust cost pass-through mechanisms.
- The EUR/JPY pair retreated below the 177.00 level, approaching its nine-day exponential moving average (EMA) as the Yen found support amid shifting yield expectations.
Indonesian Vice President Resigns Amid Eligibility Row
Indonesian Vice President Gibran Rakabuming Raka has formally submitted his resignation to President Prabowo Subianto on November 12, 2026. The move follows weeks of mounting pressure after the Supreme Court invalidated an educational equivalency certificate used for his 2024 candidacy. The resignation comes just as 120 lawmakers from eight political parties were set to initiate a formal motion for impeachment in Parliament.
The political exit of Gibran, the 39-year-old son of former President Joko Widodo, marks a significant shift in the ruling coalition's stability. While President Prabowo reportedly advised Gibran to contest the court rulings, the Vice President opted to step down to avoid a prolonged constitutional crisis. The Indonesian Parliament is now expected to begin the process of selecting a replacement to fill the vacancy.
Taiwan Stocks Retreat as Chip Sector Volatility Persists
Taiwanese equities reversed early-session gains on Thursday, with the TAIEX falling 1.2%. This decline follows a period of extreme volatility where the index plummeted over 1,800 points earlier in November. Market bellwether Taiwan Semiconductor Manufacturing Co. (TSMC (2330)) remains under scrutiny as investors weigh global semiconductor demand and the fallout from the recent U.S. midterm elections.
The broader sell-off has been exacerbated by concerns over AI infrastructure spending and valuation corrections in the tech sector. Despite the government's National Stabilization Fund being on standby with NT$500 billion, investor sentiment remains cautious. Analysts suggest that the market is currently testing support levels near the 40,000-point mark after retreating from October's record highs.
Fitch: APAC Gas Utilities Resilient to Cost Pressures
Fitch Ratings reported on November 12 that higher operating and procurement costs are unlikely to lead to significant credit rating downgrades for Asia-Pacific (APAC) gas utilities. The agency noted that most rated entities have "ample headroom" in their credit profiles, supported by regulated tariff structures. These mechanisms allow utilities to pass through increased costs to end-consumers, maintaining stable EBITDA margins.
While companies like PT Perusahaan Gas Negara Tbk (PGAS) face higher costs due to reliance on liquefied natural gas (LNG), the sector's average net leverage is expected to remain stable at approximately 1.0x through 2027. Fitch highlighted that natural gas remains a critical transition fuel in developing economies like China and India, ensuring resilient long-term demand despite near-term macroeconomic headwinds.
Fixed Income and Forex: Japan Bond Demand Rises
In the fixed-income market, Japan’s 5-year bond auction on November 12 saw a bid-to-cover ratio that exceeded the 12-month average, according to Bloomberg data. The strong demand comes as Japanese households and institutional investors increase their exposure to domestic debt following a period of rising yields. The 2-year JGB yield recently hit its highest level since 2008, reflecting expectations of further policy normalization by the Bank of Japan.
In currency markets, the EUR/JPY pair retreated below 177.00, nearing its nine-day exponential moving average. The Yen's modest recovery is partly attributed to a narrowing yield gap as JGB yields climb, while the Euro faces pressure from cooling growth expectations in the Eurozone. Traders are closely monitoring the 176.20 support zone for signs of a potential bullish rebound or further correction.
Automated market updates written with AI from market data and news wire reports, published without human review.