Below is a list with tagged columns and company profiles.

Today's Headlines China

  • Indonesia Stock Market & Rupiah: Gaining on Improved Certainty about Fed Rate

    Indonesian assets produced a strong finish on Friday (20/11). The benchmark Jakarta Composite Index and rupiah both strengthened considerably on increased certainty about the timing of higher US interest rates, while China announced it implemented more measures to encourage economic growth, giving rise to a stronger yuan (supporting stronger emerging currencies in Asia). Indonesian stocks rose 0.94 percent to 4,561.33 points, while the rupiah appreciated 1.10 percent to IDR 13,623 per US dollar (Bloomberg Dollar Index).

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  • Asian Stocks Expected to Be Under Pressure on Thursday

    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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  • Stock Market & Rupiah Update Indonesia: China and Fed in Spotlight

    Indonesia's benchmark Jakarta Composite Index climbed 0.01 percent to 4,451.59 points on Wednesday (11/11) despite foreign investors recording a net sell of IDR 614.4 billion (approx. USD $45.5 million). Uncertainty persists in the global economy as more macroeconomic data from China signal weaknesses in the world's second-largest economy. Growth in output from China's factories declined to a six-month low in October (missing expectations), following earlier disappointing trade and inflation data. On the other hand, it triggers hope that Beijing will step up stimulus measures.

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  • Few Reasons to Get Excited about the Coal Mining Industry

    The global coal industry is still plagued by pessimistic sentiment. Not only has the global supply glut in combination with sluggish global economic growth put serious pressure on coal prices (while China introduced stricter coal quality tests on thermal coal imports), but most countries are also placing more emphasize on cleaner energy sources, which further curtail demand for coal. Coal prices are currently heading for a decade-low with January 2016 coal futures now at USD $52.55 per metric ton on the ICE Futures Exchange.

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  • Indonesian Stocks & Rupiah: Pressures due to China Inflation & Fed Rate Hike

    Most stock indices in Asia fell on Tuesday's trading day (10/11) on concern that China's stalling economy negatively impacts on the pace of global economic growth, while markets are also bracing for a looming US interest rate hike before the year-end. Moreover, sentiments in Southeast Asia are not positive as the majority of Q3-2015 earnings reports have been unfavorable. Combined, it triggers a flight to safer haven assets. Indonesia's benchmark Jakarta Composite Index fell 1.08 percent to 4,451.05 points.

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  • Fed Rate Hike & China Slowdown. What is the Impact on Emerging Markets?

    With a staggering 271,000 jobs added to the US economy in October, exceeding forecasts by a big margin, while the US unemployment rate eased to 5.0 percent, the majority of analysts and market participants now expect to see a 25 basis points Fed Fund Rate hike in December (markets are currently pricing in a 70 percent chance of a December US rate hike). Meanwhile, trade data from China underscore the persistent economic slowdown in the world's second-largest economy. What are the effects of these issues on Indonesian assets?

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  • Stock Market & Rupiah Update Indonesia: Mixed Opening on Monday Morning

    Shares in the Asia-Pacific were mixed after opening on Monday (09/11). While, Japanese shares touched a fresh 2.5 month high on a weaker yen and Chinese shares went up (despite disappointing trade data), shares in Indonesia, South Korea and Australia were down. Indonesia's benchmark Jakarta Composite Index fell approximately 0.50 percent after opening on Monday, while the Indonesian rupiah had depreciated 0.83 percent to IDR 13,676 per US dollar by 09:16 am local Jakarta time.

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  • Indonesian Stocks & Rupiah: Yellen's Remarks Put Pressure on Emerging Market Assets

    Indonesian stocks and the rupiah are feeling the negative impact of news from the USA. Both Federal Reserve Chairwoman Janet Yellen and New York Federal Reserve President William Dudley said a Fed Fund Rate hike in December is a "live possibility" amid low US employment, continued GDP growth and confidence that inflation will rise to the US central bank's target range. As a result of these remarks gold dropped to a one-month low, stocks declined, while bond yields and the US dollar were pushed higher.

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  • Indonesia Stock Market & Rupiah Update: Bucking the Trend

    Indonesia's benchmark stock index (Jakarta Composite Index) was one of the few Asian indices that bucked the trend on today's trading day (02/11). Whereas most Asian indices, led by Japanese shares, fell on concern about persistent manufacturing contraction in China, the Jakarta Composite Index managed to rise 0.22 percent to 4,464.96 points. Meanwhile, oil prices dropped and the US dollar extended losses against most emerging market currencies.

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  • Most Asian Stocks Start Lower on China's Weak Manufacturing PMI

    Most Asian stock indices opened lower on the first trading day of the week on persistent concern about China's economy. Chinese authorities announced that the country's official October manufacturing purchasing managers' index (PMI) was 49.8 (a reading below 50.0 indicates contraction), unchanged from the preceding month and below analysts' consensus of 50.1. Concern about sluggish manufacturing in China caused falling stock indices. Japanese shares were affected the most.

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Latest Columns China

  • Jakarta Composite Index: What is Next for Indonesian Stocks?

    Stock markets in Indonesia have been particularly volatile in recent weeks, and this has left many investors wondering about whether or not the rally that started last October is still viable and ready to continue. Last month, the MSCI Indonesia Index (which trades under the stock symbol EIDO) took a large drop - from well above the 6,500 mark to below 6,000. From a percentage perspective, a move like this can generate significant losses for those that bought into Indonesian stocks while they were still at elevated levels.

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  • Domestic & Foreign Investment in Indonesia on the Rise in Q1-2015

    Investment realization in Indonesia in the first quarter of 2015 totaled IDR 124.6 trillion (USD $9.7 billion), up 16.9 percent from the same quarter last year. Domestic direct investment climbed 22.8 percent (y/y) to IDR 42.5 trillion, while foreign direct investment (FDI) rose 14 percent (y/y) to IDR 82.1 trillion in Q1-2015. These data, released by the Indonesia Investment Coordinating Board (BKPM) on Tuesday (28/04), brought some positivity in Indonesia after listed companies’ weak Q1-2015 financial results led to concern and capital outflow.

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  • Rubber Industry Indonesia: Challenges and Opportunities

    In late 2014 Indonesian rubber producers and exporters were not amused when the government of China decided to approve a new standard for compound rubber imports. The permitted crude rubber content in imported compound rubber was cut from 95-99.5 percent to 88 percent, meaning that compound rubber imports into China became subject to a 20 percent import duty (the same tariff as natural rubber import duties). China’s new policy is a blow to its rubber suppliers, which include Indonesia, Thailand, Malaysia, and Vietnam.

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  • Analysis Performance of the Indonesian Rupiah Exchange Rate

    The Indonesian rupiah exchange rate continued to depreciate on Monday (02/03). According to the Bloomberg Dollar Index, Indonesia’s currency depreciated 0.30 percent to IDR 12,970 per US dollar, a six-year low. Apart from general bullish US dollar momentum in recent months (amid monetary tightening in the USA), the rupiah weakened due to Bank Indonesia’s signals that it tolerates a weaker currency in a move to boost exports (limiting the country’s current account deficit), and due to China’s interest rates cut.

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  • Rupiah Exchange Rate Indonesia Update: Why the Currency Gained Today

    Positive macroeconomic data of Indonesia - involving the significantly lower trade deficit in 2014 and easing inflation - had a good impact on the Indonesia rupiah exchange rate on Tuesday (03/02) although prior to closing the currency somewhat slid after Australia's central bank cut its interest rates causing speculation of further policy easing around the Asia Pacific region in a move to support sluggish growth and avert deflation. Most emerging Asian currencies strengthened on Tuesday against the US dollar on stronger risk appetite.

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  • Indonesian Stocks Hit Record High on ECB & Chinese Stimulus

    Indonesian stocks hit a record high on Thursday (22/01). Most emerging Asian stocks and currencies strengthened on increased speculation that the European Central Bank (ECB) is to launch a massive bond-buying program (which was confirmed later on the day after Asian markets had closed), a move aimed at boosting inflation in the Eurozone and which puts pressure on euro-denominated assets. The euro had depreciated 1.67 percent against the US dollar by 11:20 ET on Thursday based on Bloomberg data.

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  • IMF Downgrades Global Economic Growth, China at 24-Year Low

    There was few good news from a global economic perspective as the International Monetary Fund (IMF) sharply cut its outlook for global economic growth in the next two years. According to the IMF, global economic growth will only reach 3.5 percent (y/y) in 2015 and 3.7 percent in 2016 due to poorer prospects in China, Russia, the Eurozone, and Japan. Economic growth of China (the world’s second-largest economy) fell to a 24-year low at 7.4 percent year-on-year (y/y) in 2014, below the government target of 7.5 percent (y/y).

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  • Indonesian Rupiah Exchange Rate Rebounds from Six-Year Low

    Contrary to the previous trading day, most emerging Asian currencies strengthened against the US dollar on Tuesday (09/12) supported by the yen’s advance as falling oil prices dented risk appetite. Based on the Bloomberg Dollar Index, Indonesia’s rupiah appreciated 0.47 percent to IDR 12,331 per US dollar today. Despite local firms’ increased US dollar demand to settle debt before the year-end, market participants were happy to learn that Indonesia’s central bank is active in the foreign exchange market to guard the currency.

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  • Stock Market & Rupiah Update Indonesia: Bad Start of the Week

    Despite positive stock indices in the USA and Europe at the end of last week as well as mostly positive indices in Asia today (08/12), the benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) fell due to investors’ appetite for profit taking. Several matters made investors decide to sell their Indonesia shares, including the World Bank’s downward revision of Indonesia’s economic growth in 2015, Japan’s recession, weakening Chinese exports, and the sharply depreciating rupiah exchange rate.

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  • Rubber Update: Indonesia, Thailand & Malaysia Make New Policies

    Thailand, Indonesia and Malaysia, the world’s three largest rubber producing countries (accounting for about 70 percent of total global natural rubber output), have agreed to avoid excessive natural rubber supply on the international market by limiting their rubber exports. The countries also agree to curb new rubber plantation development as well as to spur domestic rubber consumption in each country. This statement was read out by Douglas Uggah Embas, Plantation Industries Minister of Malaysia, in Kuala Lumpur today (20/11).

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