Dollar sukuk yields losses due to weaker faith in Joko, Najib

Jakarta

DOLLAR sukuk returns are turning negative in Asia's biggest Islamic finance markets as confidence in government leaders sours amid a regional selloff.

Indonesia's Syariah-compliant sovereign bonds due in 2024 have dropped 3.8 per cent since April and the 2025 Malaysian debt lost 2.6 per cent, compared with a 2.4 per cent decline in a Bloomberg index of emerging-market conventional government notes. In that period, the rupiah plunged 6.4 per cent, and the ringgit 13 per cent.