The new trading week started positively in Asia. After Wall Street had risen sharply on Friday (22/01) due to higher oil prices (particularly causing surging energy stocks), Asia extended the rally on Monday (25/01). In addition, investors are optimistic that the central bank of Japan will turn to more easing (the institution will conduct its monthly policy meeting later this week), while the European Central Bank had already hinted at further easing in last week's policy meeting.

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The Jakarta Composite Index is expected to be under pressure on Monday (18/01) as the selloff continues in Asia. Both China's Shanghai Composite Index and Japan's Nikkei 225 index were down around 1.50 percent on Monday morning. Main concerns of investors are the persistent slide of crude oil prices as well as weak US retail sales and US industrial output in December. As a result, high-yielding currencies weakened, while demand for safe haven assets supported government debt and gold.

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Asian stocks are again in deep red territory on Thursday (14/01), led by Chinese shares (which are on track to enter a bear market) as well as Japanese shares. It means that the rebound that had occurred earlier this week - caused by positive export data from China - was short-lived. The continued slide of oil prices (below USD $30 per barrel) and turmoil in China cause money to flow away from equity and fragile emerging market currencies.

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The sell-off continued in Asia on Monday (11/01). Asia's stock indices - led by China's Shanghai Composite Index - fell deep into red territory. China's muted inflation in December, today's 5.33 percent plunge of the Shanghai Composite Index, sliding oil prices, and falling stocks on Wall Street last week (US stocks experienced their worst week in four years), made investors in search of safe haven assets such as gold, Japan's yen and the US dollar. Meanwhile, Indonesia's benchmark Jakarta Composite Index fell 1.78 percent to 4,465.48 points.

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Stocks and currencies across Asia are under heavy pressure on Thursday (07/01) after China's central bank set its yuan rate 0.51 percent lower (at 6,5646 per US dollar). As a result, Chinese shares plunged over 7 percent (triggering the new circuit-breaking mechanism - for the second day this week - 30 minutes after trading opened today). Asian shares are also weak due to big losses in Europe and on Wall Street overnight. Markets reacted to the oil price that slid to a more-than-seven-year low at USD $33.97 per barrel.

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Stock indices in Southeast Asia plunged on Friday (18/12), led by benchmark indices in Thailand and Indonesia. These Asian markets followed the global correction that occurred after investors weighed in the possible impact of the Federal Reserve's interest rate hike. US and European stocks dropped on Thursday and Friday, while prices of oil and other commodities continued to slide. Indonesia's Jakarta Composite Index fell 1.92 percent to 4,468.65 points.

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After the rally on Thursday (responding positively to the Federal Reserve's announcement to raise its Fed Fund Rate), Indonesian assets are weakening on Friday (18/12) while most other Asian markets are down. Indonesia's benchmark Jakarta Composite Index was down 1.20 percent to 4,501.34 points by 09:45 am local Jakarta time, while the Indonesian rupiah had depreciated 0.22 percent to IDR 14,040 per US dollar (Bloomberg Dollar Index). As such, Indonesian stocks are following the example of US stocks that plunged overnight.

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Across the world, stock indices plunged on persistent concern about lower commodity prices (especially as crude oil dived to a two-month low and may start to flirt with the USD $40 per barrel level again), concern about slowing credit growth in China, while markets are also bracing for a possible US interest rate hike in December (a move that will particularly trigger capital outflows from riskier emerging market assets). This month markets are under severe selling pressure after experiencing a rally in October.

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Shares in Asia are expected to be under some pressure today as crude oil prices slid 2.9 percent overnight after the American Petroleum Institute released a report that stated US supplies grew unexpectedly by 6.3 million barrels. Other commodity prices were also down after the release of downbeat industrial output data from China on Wednesday. However, with China's positive October retail sales (posting the strongest gain of the year) there are few chances of seeing new massive stimulus from Chinese authorities. As such 'bad news' is no 'good news'.

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Indonesian stocks and the rupiah outperformed their regional peers on Tuesday (03/11) after US stocks posted strong gains overnight on the back of a spate of acquisition deals and positive US manufacturing activity and construction spending data. Most Asian stock indices rose on these improved global market sentiments. Indonesia's benchmark Jakarta Composite Index climbed 1.53 percent to 4,533.09 points.

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After the release of US non-farm payrolls on Friday (02/10) markets are starting to doubt whether the Federal Reserve has room to raise its key Fed Fund Rate at all in 2015. In September a total of 142,000 jobs were added to the US economy, well below the market consensus of 201,000. Moreover, August non-farm payrolls were revised down to 136,000 (from 173,000 initially). It was the first time since mid-2013 that US jobs grew at such a slow pace in two consecutive months. So far in 2015 US non-farm payrolls grew at an average of 198,000 per month, significantly down from the average growth pace of 260,000 per month last year.

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Both the Indonesian rupiah exchange rate and stocks continued to fall on Tuesday (06/01) as global conditions remained unconducive. Indices on Wall Street had declined sharply yesterday as the global oil prices fell below USD $50 per barrel fueling concerns about a weaker global economy. Similarly, most Asian stock indices declined as Japan's yen appreciated and energy stocks were sold by investors. Indonesia’s benchmark Jakarta Composite Index fell 0.98 percent to 5,169.06 points.

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It was a good start of the week for the benchmark stock index of Indonesia (known as the Jakarta Composite Index, abbreviated IHSG). Various factors, both internal and external, managed to push the index higher on Monday (20/10). Externally, the IHSG was supported by positive Asian indices which responded to last week’s good US economic data (building permits, housing starts, and consumer sentiment). Moreover, the sharply appreciating Indonesian rupiah exchange rate made Indonesian assets more attractive.

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Indonesian stocks and the rupiah have rebounded on Friday due to several internal and external factors. During the first trading session on Friday (17/10), the benchmark stock index of Indonesia (Jakarta Composite Index, or IHSG) surged 0.94 percent to 4,998.14 points. Meanwhile, based on the Bloomberg Dollar Index, the Indonesian rupiah exchange rate had appreciated 0.26 percent to IDR 12,228 per US dollar by 12:30 pm local Jakarta time. Why do Indonesian stocks and the rupiah perform well on Friday?

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In line with global stock indices, the benchmark index of Indonesia (Jakarta Composite Index, abbreviated IHSG) declined on Thursday’s trading day. Falling indices on Wall Street were a major concern to global investors as weak corporate and economic data may indicate that the economic recovery of the USA is not as structural as previously assumed. The NY empire state manufacturing index, US retail sales, US chain store sales, and US business inventories all weakened and ‘infected’ Asian stock indices, including the IHSG.

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Despite the fact that foreign investors continued to record net selling (IDR 216.9 billion) and despite mostly declining stock indices in Southeast Asia, the benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) rose 0.19 percent to 4,922.59 points on Tuesday’s trading day (14/10). The IHSG was particularly supported by rising consumer and manufacturing stocks. Indonesian stocks were also supported by the appreciating rupiah exchange rate.

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Indonesian stocks tumbled at the first trading day of the week as investors are still concerned about the condition of the global economy. Declining stock indices on Wall Street at the end of last week had a negative impact on Asian stock indices, including Indonesia’s benchmark stock index (known as the Jakarta Composite Index, or abbreviated IHSG). The IHSG fell 1.01 percent to 4,913.05, its lowest level since 4 July 2014, on Monday (13/10). Foreign investors recorded net selling of IDR 595 billion (USD $49.6 million).

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In line with the volatile performance of global stocks, led by indices on Wall Street, the benchmark stock index of Indonesia (Jakarta Composite Index, or abbreviated IHSG) showed a volatile performance over the past week. US stocks mostly declined - except for the sharp rebound on Wednesday after Federal Reserve minutes signalled no higher US interest rates anytime soon - on concerns about the global economy (particularly the Eurozone), looming higher US interest rates, and the appreciating US dollar (hurting US exports).

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It was a relief for investors to learn that the benchmark stock index of Indonesia (Jakarta Composite Index, or IHSG) rebounded on Thursday (09/10) after having experienced a sharp decline on the previous day. The IHSG was supported by rising Asian stocks after indices on Wall Street had surged on Wednesday (08/10). Wall Street was up as minutes of the latest Federal Reserve meeting signalled that US interest rates will remain low 'for a while'. Another positive factor was that today’s appreciation of the Indonesian rupiah exchange rate.

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The benchmark stock index of Indonesia (Jakarta Composite Index or IHSG) climbed slightly on Monday (18/08), not being impacted - as we feared earlier - by mixed stock indices on Wall Street and Europe on Friday (15/08). Increased speculation about widening Chinese monetary policy in the country’s property sector made a good impact on Asian stock indices, including Indonesia’s IHSG. At the end of the trading day, the IHSG had strengthened 0.15 percent to 5,156.75 points, also supported by the appreciating rupiah (Bank Indonesia’s mid-rate).

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