Asian Islamic bonds turn to losses as confidence in leaders ebbs

Dollar sukuk returns are turning into losses in Asia’s biggest Islamic finance markets as confidence in government leaders sours amid a regional sell off. In Indonesia, President Joko Widodo reshuffled his Cabinet last week as he looks set to miss his 2014 election pledge to boost annual growth to 7% and as infrastructure spending falls short. Malaysian Prime Minister Datuk Seri Najib Razak is embroiled in controversy after a probe revealed he received RM2.6 billion in donations from the Middle East. He denied taking money for personal gain and has also reshuffled the Cabinet, including removing his deputy.