Stock Market in Indonesia Potentially Dropping Further on Monday
Asian Markets Open Higher Amid Fed Rate Cut Expectations and Contained Tariff Impact
After a weak start, Asian stock markets opened higher on Monday, buoyed by expectations of Federal Reserve interest rate cuts following a weak American jobs report and easing trade tensions, including new U.S. tariffs.
The Chinese stock market showed a resurgence, indicating regional optimism despite external uncertainties. The weak U.S. jobs report contributes to the Fed rate cut expectations, as subdued U.S. economic data typically reduces pressure on monetary tightening and can support global markets.
While some Asian indexes like Japan's Nikkei showed slight softness at the start of trading, overall momentum remained positive. The U.S. dollar softened slightly, which often supports emerging Asia equities. The new U.S. tariffs, while a source of trade tension, seem to have been partially mitigated by easing concerns and strong local market performance, contributing to a generally upbeat tone.
In Indonesia, the Jakarta Composite Index (JCI) hovered close to the 7,540-point plateau. Bank CIMB Niaga dipped 0.29 percent, Bank Mandiri collected 0.44 percent, Bank Central Asia rose 0.30 percent, Bank Rakyat Indonesia improved 0.81 percent. Energi Mega Persada plunged 3.39 percent, Aneka Tambang climbed 1.05 percent, Vale Indonesia rallied 3.19 percent. Indofood Sukses Makmur lost 0.59 percent, United Tractors shed 0.52 percent, Astra International tumbled 1.96 percent. Timah retreated 1.49 percent, Bumi Resources, Astra Agro Lestari, Bank Danamon Indonesia and Bank Negara Indonesia were unchanged.
Indosat Ooredoo Hutchison surged 4.09 percent, Indocement skyrocketed 6.67 percent, Semen Indonesia jumped 2.03 percent.
The Dow Jones Industrial Average plummeted 2.9 percent for the week, while the S&P 500 sank 2.4 percent and the NASDAQ Composite was down 2.2 percent. The new tariff rates range from 10 percent to 41 percent.
This cautious optimism is reflected in both stock market gains and currency behavior across Asia, as investors remain hopeful about the potential for continued monetary easing and improved trade relations.
The optimistic sentiment in Asian markets, driven by Fed rate cut expectations and easing trade tensions, has seen a surge in business activities, particularly in the finance industry. This is evidenced by the rise of various stock indices across the region.
The resurgence of the Chinese stock market and the performance of Indonesian companies like Indosat Ooredoo Hutchison, Indocement, Semen Indonesia, and Astra International, indicate a generally upbeat tone in the business and finance sector.
