**MSCI Warnings Hit National Markets**

**MSCI warnings have hit Turkey and Indonesia hard.** Turkey’s stock market fell **23%** after MSCI’s first warning in June. Indonesia’s fell **18% in 3 days** after MSCI warned it could lose emerging-market status.

On Oct 15, MSCI froze changes to Turkey indexes. It will not add Turkish stocks or increase existing weights, limiting **new foreign index buying**. It could move Turkey from emerging-market to frontier or standalone status if there is no progress by **June 2027**.

The trigger is a fund scandal. Turkey’s regulator ordered the liquidation of **131 funds** on Sept 17, after prosecutors investigated manipulation of thinly traded stocks through the funds.

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