Further Mergelization Advocated for Indonesian Stock Exchange Market
Asian Markets Show Mixed Performance Amid Trade Tensions and Inflation Concerns
The Asian market landscape remains cautiously optimistic yet murky due to conflicting signals from U.S. tariff policies and uncertain macroeconomic data.
In Indonesia, the Jakarta Composite Index (JCI) dipped 13.57 points or 0.18 percent on Thursday to finish at 7,490.18, slipping more than 25 points or 0.3 percent in two consecutive sessions. However, there were notable exceptions among some companies. Indosat Ooredoo Hutchison, a telecommunications company, gained 0.44 percent, while Bank Mandiri, a prominent Indonesian bank, shed 0.43 percent.
Meanwhile, Vale Indonesia, a mining company, soared 5.40 percent, Timah, another mining company, advanced 1.00 percent, and Astra International, a conglomerate, climbed 1.22 percent. On the other hand, Bumi Resources dropped 0.88 percent, and Semen Indonesia, another cement company, slumped 1.19 percent.
The market outlook for Asian markets is influenced by a variety of factors. Last week, Asian markets rebounded slightly, with indexes gaining around 1.4 percent after a prior 3.5 percent decline, largely supported by strong July trade data from China and hopes surrounding earnings and policy meetings. However, some indices like Hong Kong’s Hang Seng have shown recent declines partly affected by weak corporate earnings and caution ahead of China’s tariff deadline and inflation data.
Broader Asian stock gains continue cautiously ahead of major U.S. inflation data, which is expected to influence the Federal Reserve’s interest rate decisions and, consequently, global market sentiment. The recent extension of the U.S. tariff pause on Chinese goods by President Trump adds some relief but also adds to uncertainty about future trade relations, contributing to an uneven market outlook.
Key financial players and sectors show mixed performance: while DBS Bank in Singapore hit record prices on strong earnings, other banks and industrials declined amid these macro challenges. Market watchers are awaiting U.S. consumer price index (CPI) inflation figures closely as unexpected increases could dampen hopes for Fed rate cuts, which would weigh on Asian market optimism.
Elsewhere, the NASDAQ Composite Index gained 73.27 points or 0.35 percent to close at 21,242.70. The Dow Jones Industrial Average (Dow) stumbles 224.48 points or 0.51 percent to finish at 43,968.64. The S&P 500 falls 5.06 points or 0.08 percent to end at 6,340.00.
In the U.S. economic news, first-time claims for U.S. unemployment benefits rose more than expected last week. The Labor Department noted a significant rebound by labor productivity in the second quarter. However, crude oil prices fell Thursday due to inconsistency in the U.S. stance on Russia and its invasion of Ukraine.
President Donald Trump announced a 100 percent tariff on imports of semiconductors and chips, but companies that are building in the United States will be exempt. This new tariff on dozens of countries took effect on Thursday, causing traders to express concerns about the economic impact of Trump’s trade policies.
As the market continues to navigate this complex environment, investors remain watchful of tariff negotiations and upcoming inflation statistics that influence both Federal Reserve actions and regional trade dynamics. The market trend could quickly shift depending on U.S. policy and economic reports.
- Amid the ongoing trade tensions and inflation concerns, the performance of the finance sector in Asia remains mixed, with some banks and industrials experiencing declines, while DBS Bank in Singapore hit record prices on strong earnings.
- The Indonesian business landscape shows a somewhat contrasting trend, with some companies like Vale Indonesia, Timah, and Astra International showing growth, while others like Bumi Resources and Semen Indonesia experience a decrease.
