Indonesia’s rupiah rose the most in two weeks and government bonds advanced after U.S. jobs data that trailed estimates pushed back expectations for when the Federal Reserve will raise interest rates.

Employers in the world’s largest economy added fewer positions in September than the lowest estimate in a Bloomberg survey, according to a report released Friday. Asian currencies and stock markets rallied Monday on the data, which was taken as evidence the Fed may not increase benchmark borrowing costs in 2015. Indonesia is vulnerable to higher U.S. interest rates as they will erode the yield advantage of its sovereign bonds, which have the highest level of foreign ownership in Southeast Asia.

“The positive implication is the rate hike this year could be delayed into next year,” said Sim Moh Siong, a foreign-exchange strategist at Bank of Singapore Ltd. in the city. “At the same time the view here is that the soft payroll is more a small bump in the road.”

The rupiah strengthened 0.5 percent, the most since Sept. 18, to 14,568 a dollar as of 10:58 a.m. in Jakarta, according to prices from local banks. That pared its loss this year to 15 percent, the worst performance in Asia after Malaysia’s ringgit. The Jakarta Composite Index of shares rose 2.5 percent, on track for its biggest daily advance since Aug. 27.

The yield on Indonesia’s government bonds due September 2026 fell 15 basis points to 9.23 percent, according to the Inter Dealer Market Association. The yield has dropped 58 basis points in a four-day declining streak.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE