Stock Market in Indonesia Might Drop Further on Monday
In the global financial landscape, Asian markets are gearing up for a mixed start on Monday, with a note of cautious optimism. This optimism is underpinned by strong local economic data and stimulus expectations, despite the looming shadows of new U.S. tariffs and a weak American jobs report.
The Dow Jones Industrial Average (Dow) experienced a tumultuous week, plummeting 2.9 percent and tumbling 542.42 points. The Dow's lead from Wall Street is brutal, as the major averages opened sharply lower on Friday. Similarly, the NASDAQ was down 2.2 percent for the week, and the S&P 500 sank 2.4 percent.
The Jakarta Composite Index (JCI) is close to the 7,540-point plateau, having halted a two-day slide on Friday and finishing modestly higher. This Indonesian market recovery was marked by gains in companies like Energi Mega Persada, Aneka Tambang, and Vale Indonesia, while Indofood Sukses Makmur, United Tractors, Astra International, and others experienced losses.
In the same vein, the Indonesian stock market was not immune to the impact of new U.S. tariffs. A 40 percent levy will be imposed on goods that have been transshipped to evade applicable duties, adding further pressure to export-driven Asian economies.
However, it's not all doom and gloom. The forecast for Asian markets on Monday indicates a sense of optimism, despite recent challenges. Japan’s Nikkei 225 and China’s CSI300 index have recently rebounded strongly, supported by better-than-expected domestic economic data and stimulus hopes.
The global forecast for Asian markets is still negative due to the new U.S. tariffs and a weak American jobs report. Disappointing American labor market data tends to raise concerns about global growth and demand, potentially dampening investor sentiment. However, recent market reactions suggest that some investors are focusing on positive regional economic surprises and stimulus prospects as counterbalances.
Crude oil prices also took a hit, falling $1.92 or 2.77 percent at $67.34 per barrel for September delivery. Meanwhile, the banking sector in Indonesia showed a mixed picture, with Bank CIMB Niaga, Bank Mandiri, Bank Central Asia, and Bank Rakyat Indonesia experiencing minimal changes, while Bank Danamon Indonesia and Bank Negara Indonesia remained unchanged.
Monitoring trading updates closer to market open will provide more definitive signals about the market's direction. Indosat Ooredoo Hutchison, Indocement, and Semen Indonesia all saw gains, while Indosat Ooredoo Hutchison surged 4.09 percent, Indocement skyrocketed 6.67 percent, and Semen Indonesia jumped 2.03 percent.
In conclusion, while volatility is likely on Monday with mixed influences from U.S. tariff actions and labor data, Asian markets may open with a cautious yet generally positive tone. They will lean on strong local economic data and stimulus expectations but remain sensitive to ongoing global trade tensions and economic fundamentals.
- The financial sector, including the Dow Jones Industrial Average, NASDAQ, and S&P 500, all experienced significant losses last week, indicative of a challenging business environment.
- Despite the negative global forecast due to U.S. tariffs and a weak American jobs report, Asian markets are expected to open with a cautious yet positive tone, supported by strong local economic data and stimulus expectations.
