Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,616) +104.00 +0.72%
EUR/IDR (16,676) +221.69 +1.35%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
Concerns about the US debt ceiling issue have a negative impact on stock indices around the world, including Indonesia's benchmark stock index (IHSG). Market players fear a possible deadlock during the state budget discussions, which - if not resolved - will have a serious negative impact on the economy. Factors that contributed to negative market sentiments were the continued depreciating value of rupiah and weak openings of European stock indices. The IHSG fell 2.43 percent to 4,316.18 on Monday (30/09).
The US debt ceiling issue not only had a negative impact on the performance of Indonesian stocks but also on its currency. After having appreciated at the end of last week, the rupiah fell against the US dollar on Monday (30/09).| Source: Bank Indonesia
Similarly, Asian stock indices experienced a sell off as investors are concerned about the US debt ceiling discussions. China's index, however, was able to rise, supported by the higher HSBC manufacturing PMI and by consumer and technology stocks ahead of the national holiday.