PT Barito Renewables Energy, one of Indonesia’s biggest companies by value, denied taking steps to inflate the volume and price of its shares to gain entry into MSCI Inc. indexes.

Most emerging-market currencies advanced Monday after Iran’s supreme leader authorized the government to hold peace talks, easing concerns over the conflict in the Middle East and stoking a slump in oil prices.

Stock trading schemes that helped enrich Indonesia’s tycoons have put the country on the verge of a costly MSCI downgrade.

Indonesia’s 10-year government bond yield climbed to a four-year high and the rupiah weakened toward a record low as elevated oil prices and MSCI Inc.’s threat of a stocks downgrade hurt investor sentiment.

Bloomberg reporters answer your questions about the challenges Southeast Asia's biggest economy faces on Oct. 23 at 11 a.m. HKT

Indonesian shares rebounded from earlier losses, as the nation’s sovereign wealth fund said it has been buying local stocks.

At a meeting on Sunday afternoon involving officials from Indonesia’s Financial Services Authority and the country’s stock exchange, some attendees were surprised to see several prominent Instagrammers present.

Indonesian stocks rebounded after authorities moved to stave off a potential two-step downgrade by MSCI Inc., though questions remain over whether the measures go far enough to address the index provider’s concerns.

The Indonesia Stock Exchange’s plan to remove shares with highly concentrated ownership from its benchmark is a step in the right direction as regulators work to avoid a double market downgrade by MSCI Inc., analysts said.

Indonesia will remove stocks with concentrated ownership from its benchmark equities index, the latest effort to avert a possible downgrade of its market status by MSCI Inc.

Indonesian officials plan to meet with MSCI Inc. executives on Monday after saying they were blindsided by the index provider’s threat to reclassify the country as a standalone market — a much more severe step than they thought was under discussion during months of talks.

Indonesian markets extended their selloff, with stocks deepening their worst rout in almost 30 years and losses spreading to bonds and the rupiah after MSCI Inc. warned the country may face a two-step downgrade.

Indonesia announced about $117 million in fines tied to manipulative market practices involving three companies, hours after global index provider MSCI Inc. said it was weighing a downgrade of the country’s stock market over investability concerns.

Indonesia has spent decades establishing itself as one of the world’s most important emerging markets. Now the country — Southeast Asia’s largest economy, with a gross domestic product of about $1.5 trillion — risks losing that standing, potentially jeopardizing billions of dollars in foreign investment.

Indonesian stocks suffered their worst rout in nearly three decades after MSCI Inc. warned the country’s emerging-market status was in jeopardy, raising the prospect of its removal from global indexes and stoking fears of foreign capital flight.

Indonesian stocks slid, sending the benchmark index to a three-month low as speculation that some of the country’s largest-listed companies could face regulatory fines rattled sentiment.

FTSE Russell has reaffirmed the emerging-market status of Indonesian equities amid measures taken by local authorities to improve transparency.

The new head of Bank Indonesia said the intensity of its rupiah defense remains unchanged even as it relies less on costly spot-market interventions and increasingly uses derivatives.

Emerging-market assets extended their selloff on Monday amid surging US Treasury yields, with developing-world stocks tumbling and EM bonds heading for their worst month since the Iran war first roiled markets in March.

Emerging-market equities and currencies gained after the US and China gave upbeat assessments of their talks ahead of a summit, while declining oil prices added to positive sentiment.