Indonesia Stock Market Update: Light Trading in Asian Markets
On early Monday morning we detect light trading in Asian stock markets. This is mainly because markets in the USA, United Kingdom and China are closed for a public holiday today (29/05), while investors are also awaiting speeches from Federal Reserve and European Central Bank (ECB) officials as well as the US jobs report (due on 2 June). Meanwhile, North Korea again caused rising tensions as it launched another ballistic missile in its latest test.
South Korean President Moon Jae-in immediately organized a National Security Council meeting to discuss North Korea's latest ballistic missile test. Japanese Prime Minister Shinzo Abe said he will take concrete steps with the US on North Korea. At the recent G7 meeting, the topic of North Korea was determined a top priority for the international community.
Markets, however, seem not too influenced by the new ballistic missile test, presumably because market participants simply have "gotten used to it" after a series of test-launches of missiles in recent weeks.
Markets in the USA are closed on Monday (29/05) for Memorial Day. Without the guidance from the US Asian markets are rather flat and trade is expected to remain subdued during the remainder of the day.
Investors are also awaiting important economic data and events later in the week: PMI data from China, retail sales and production from Japan, the US jobs report, as well as speeches of a number of Federal Reserve policy makers and ECB President Draghi. Draghi will testify, today, about the economy and monetary developments before the Economic and Monetary Affairs Committee.
Positive sentiments stem from rising crude oil prices, continuing the modest recovery after the big drop last week, prompting an exit from oil futures markets, on disappointment that the OPEC did not decide to cut production further.