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Indonesia Stocks Fall as Morgan Stanley Cuts Target

(Corrects to say Morgan Stanley revised target on MSCI Indonesia Index.)

Indonesian shares dropped as Morgan Stanley cut its estimate for the MSCI Indonesia Index. The rupiah fell for a second day.

The Jakarta Composite index sank 2.5 percent to 3,920.72 as of 9:53 a.m. local time. Morgan Stanley lowered its estimate for December 2011 returns on the MSCI Indonesia index to 1 percent from 13 percent previously, according to a report dated yesterday.

To contact the reporter on this story: Darren Boey in Hong Kong at dboey@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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