Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,501) +55.01 +0.38%
EUR/IDR (16,343) -41.31 -0.25%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
The weak stock indices in Europe and USA at the end of last week had a negative impact on stock indices in Asia on Monday (27/05/13), including Indonesia's main stock index (IHSG). Investors rushed to reduce their stock portfolios, which resulted in an 1.36 percent fall to 5,085.14 points. At the end of last week, the IHSG had formed a green candlestick but today there were no continued positive signals as the market lacked positive sentiments. But a number of rising Asian indices and the positive openings of European stock indices managed to support the IHSG a bit.
Foreign investors mostly sold their Indonesian assets, while domestic investors mostly purchased Indonesian stocks.
The IDR rupiah was not able to continue its rise and is approaching the IDR 10,000 level compared to the US dollar after market participants responded to positive data from the USA (a rise in durable goods orders). After the Federal Reserve's comments last week (regarding a possible quickening of a halt to the stimulus program, all positive released data strengthens the US dollar. On the other hand, the gain of the US dollar was limited by the strengthening of the Yen.| Source: Bank Indonesia
Asian stock indices were mixed. Japan's Nikkei fell sharply after its Yen gained in strength as the governor of the Bank of Japan (Haruhiko Kuroda) said that Japan is able to withstand with high interest rates. Moreover, the President of China, Xi Jinping, said that the government tolerates slowing economic growth to prevent a degraded economy.