MSCI Froze Index Changes for Indonesian Securities Over Free Float Concerns

MACROECONOMY 
U.S. Raised Import Tariffs on South Korea to 25% 
Donald Trump announced an increase in U.S. import tariffs on selected South Korean products to 25% from 15% on 26-Jan, citing South Korea’s parliament failure to ratify a bilateral trade agreement. The higher tariffs cover autos, lumber, pharmaceuticals, and other goods under the U.S. reciprocal tariff scheme, although no executive order had been issued as of the announcement. South Korea said it has not received formal notification and is preparing diplomatic talks as the move risks further pressure on its export driven economy. (Kontan) 

INDUSTRY 
MSCI Froze Index Changes for Indonesian Securities Over Free Float Concerns 
MSCI announced an interim freeze on index-related changes for Indonesian securities, effective immediately, citing persistent concerns over free float transparency, shareholding opacity, and investability risks despite minor data improvements from Indonesia Stock Exchange. The policy will apply to outcomes from index reviews and corporate actions, including the Feb-26 review, while MSCI awaits meaningful transparency enhancements from market authorities. If progress remains insufficient by May-26, MSCI may cut Indonesia’s weight in MSCI EM or reclassify Indonesia to Frontier Market status, while continuing engagement with Otoritas Jasa Keuangan. Interim measures applied: - Freeze on all increases to Foreign Inclusion Factors (FIF) and Number of Shares (NOS) - No new additions to MSCI Investable Market Indexes (IMI) - No upward migration across size segments, including Small Cap to Standard (MSCI Global)