Indonesia Stock Market & Rupiah Update: Asia Extends Global Selloff
In line with the performance of the majority of stock markets in Asia, Indonesia's benchmark Jakarta Composite Index fell 0.63 percent to 4,768.62 points, while the Indonesian rupiah depreciated 0.11 percent to IDR 13,612 per US dollar (Bloomberg Dollar Index) on Tuesday (09/02). It was the first trading week for Indonesian assets after a public holiday (Chinese New Year) on Monday. Asian markets weakened today, led by Japan, due to the equities selloff that occurred in Europe and the USA overnight.
Japan's Nikkei 225 Index plunged more than five percent on Tuesday as the yen soared to a 14-month high against the US dollar. Meanwhile, Japanese sovereign bond yields were pushed to zero as investors were in search of safe haven assets. The main causes for yesterday's worldwide selloff and today's continuation in Asia remain the same: concern about China's ability to avert further slowing economic growth, oil prices that are still flirting with the USD $30 per barrel level, and the concern about whether there is a possibility of the USA falling into recession.
Markets also seem to be cautious ahead of US Federal Reserve Chairwoman Janet Yellen's semi-annual monetary policy testimony before US Congress later this week.
Markets in China, Hong Kong, Taiwan and South Korea were still closed on Tuesday (due to the Lunar New Year). Most Asian markets will be back online on Wednesday, but Chinese markets will return next week.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.26 percent to IDR 13,689 per US dollar on Tuesday (09/02).
Indonesian Rupiah versus US Dollar (JISDOR):| Source: Bank Indonesia
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