Most Asian stocks are in the red zone on Monday (09/05) and Indonesia's benchmark Jakarta Composite Index is leading declines. At the end of the first trading session Indonesian shares were down 1.15 percent at 4,767.32 points. Important issues that influence the performance of Asian stock markets are China's April trade data and US April jobs data. Meanwhile, crude oil prices continued to rally and the yen finally weakened against the US dollar (hence supporting Japanese stocks).

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Most stocks in Asia were higher on Wednesday (13/04) supported by positive trade data from China and heightened expectation of an "oil output freeze deal" at the OPEC meeting coming Sunday in Doha. Indonesia's benchmark Jakarta Composite Index rose 0.49 percent to 4,853.00 points, a modest result compared with Japan's Nikkei 225 Index (+2.84 percent), Singapore's Strait Times Index (+2.69 percent), and China's Shanghai Composite Index (+1.42 percent).

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Stocks in Asia were mostly up on Tuesday (12/04) supported by the weaker Japanese yen (retreating after a seven-day rally again the US dollar) and rising commodity prices (with crude oil touching a 2016 high at USD $43 per barrel after the US dollar weakened). Indonesia's benchmark Jakarta Composite Index rose 0.89 percent to 4,829.57 points, while the rupiah appreciated 0.14 percent to IDR 13,115 per US dollar (Bloomberg Dollar Index). Several analysts claim that the positive performance of Indonesian assets was also due to the government's plan to cut the corporate income tax to 20 percent and raise the non-taxable personal income tax by 50 percent.

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Despite last week's rallying oil prices, rising stocks on Wall Street and in Europe, as well as expectation of a more gradual increase in US interest rates, Indonesia's benchmark stock index (Jakarta Composite Index) plunged 1.23 percent on Monday (11/04). Overall, the performance of Asian stock markets was mixed reflected by stock trading in the two big economies of China and Japan. Whereas Japanese stocks fell due to the stronger yen (touching a new 17-month high against the US dollar), Chinese stocks climbed on easing worries about deflationary pressures (after China's March CPI inflation remained flat at 2.3 percent y/y).

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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.

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The Indonesian government will engage in front loading, issuing 61 percent of next year's total planned state bonds - worth IDR 532.4 trillion (approx. USD $38.6 billion) - in the first half of 2016. Proceeds are used to finance the 2016 State Budget. Earlier, on 2 December 2015, the government had already sold USD $3.5 billion worth of bonds to cover a shortfall in the 2016 State Budget, deliberately ahead of the possible US interest rate hike in mid-December (as this move is expected to reduce investor appetite for emerging market assets).

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Investors' confidence in Indonesia's rupiah restored over the past three days after markets began to believe that the US Federal Reserve has little scope to raise its key Fed Fund Rate this year (due to weak US non-farm payrolls and US ISM non-manufacturing PMI). Bank Indonesia's role should also be highlighted. Indonesia's central bank intervened heavily (through currency swaps and by using its foreign exchange reserves) to stabilize and keep the currency from weakening toward and beyond the IDR 15,000 per US dollar level. This tells investors that Bank Indonesia will not allow a worse decline.

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Most Asian stock markets are strengthening on Friday after indices on Wall Street rose yesterday on strong US economic growth. The US economy grew 3.7 percent (y/y) in the second quarter of 2015 (much higher than the 2.3 percent estimated previously). As a result, the Dow Jones Industrial Average surged 2.27 percent while global oil prices rebounded over 10 percent on Thursday (27/08).

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The Samurai (yen-denominated) bonds that are to be issued by the Indonesian government (through private placement) received a provisional rating of (P)Baa3 (stable outlook) from Moody’s Investors Service. Part of the Samurai bonds to be used by the government are without guarantees from the Japan Bank for International Cooperation (JBIC). It will be the first time for Indonesia to issue unguaranteed Samurai bonds since 1983 and thus the issuance serves as a test to measure Japanese investors’ confidence in Indonesian assets.

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While most Southeast Asian stock markets and emerging Asian currencies strengthened on Tuesday (03/03) on the back of a rebounding yen and - contrary to expectation - the decision of the Reserve Bank of Australia (RBA) to leave its cash rate a record low of 2.25 percent, Indonesian stocks and the rupiah performed rather flat. The benchmark Jakarta Composite Index fell 0.06 percent to 5,474.62 points, while the Indonesian rupiah rate appreciated 0.01 percent to IDR 12,969 according to the Bloomberg Dollar Index.

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Although the benchmark stock index (known as Jakarta Composite Index or IHSG) started the day in the green zone, it ended down due to profit taking as market participants prefer to wait for the official result of the Indonesian presidential election first. Both presidential candidates (Joko Widodo and Prabowo Subianto) declared a victory based on different unofficial quick count results. This has resulted in political uncertainty in Southeast Asia’s largest economy and thus investors refrain from buying Indonesian assets.

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Just as unexpected as yesterday when the benchmark stock index of Indonesia (known as Jakarta Composite Index or IHSG) fell 1.06 percent amid positive domestic and international circumstances, the IHSG made a surprise rebound on Tuesday’s trading day. Yesterday’s fall was exorbitant and unfounded and today market participants made up for that performance by accumulating stocks that had lost value. As a result the IHSG gained 1.25 percent to 4,946.09 points on Tuesday (10/06).

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Contrary to most Asian stock indices which were positively influenced by Japan’s higher economic growth as well as rising indices on Wall Street last Friday (06/06), the benchmark stock index of Indonesia (known as the Jakarta Composite Index or IHSG) fell considerably on Monday (09/06). Not even the appreciating Indonesian rupiah exchange rate could push the index back into the green zone. At the end of Monday’s trading day, the Jakarta Composite Index declined 1.06 percent to 4,885.08 points.

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Investors' appetite for mining and plantation stocks managed to support the benchmark stock index of Indonesia (known as the Jakarta Composite Index or IHSG) on Thursday's trading day (22/05). After the recent decline of the IHSG, market participants continued to accumulate stocks that are considered cheap. Furthermore, indices on Wall Street on Wednesday were up and impacted positively on Asian indices on Thursday, thereby providing positive market sentiments for the IHSG.

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Although initially the benchmark stock index of Indonesia (known as the Jakarta Composite Index or IHSG) declined shortly after the opening on Wednesday (21/05), during the remainder of the day it went up. This is a trend which we often detect: after a sharp fall we see a rebound on the following day as investors want to take advantage of 'cheap' stocks. However, the rebound was only limited as investors prefer to wait and see for further market sentiments first. The main positive factor today were rising Asian stock indices.

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Completely opposite to our expectations, the benchmark stock index of Indonesia (known as the Jakarta Composite Index or IHSG) managed to climb 0.57 percent to 4,862.02 points on Wednesday (07/05). The gain was unexpected as there were no clear factors that could provide positive market sentiments. Moreover, today's Asian stock indices were mostly down. Coincidence or not, tomorrow Bank Indonesia will announce whether its benchmark interest rate (BI rate) - currently set at 7.50 percent - will be changed or maintained.

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Despite being - technically - overbought, the Jakarta Composite Index (Indonesia's benchmark stock index also known as the IHSG) continued its upward trend on Wednesday (19/02). Moreover, as market sentiments have turned less positive due to data from Europe and the USA (causing European and American indices to slow down) as well as a depreciating rupiah exchange rate, there was a sincere risk of a weakening IHSG today. However, contrary to our expectations, the IHSG rose 0.80 percent to 4,592.65 points.

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Indonesia's benchmark stock index (IHSG) continued its upward movement on Wednesday (29/01) when it gained 1.74 percent to finish at 4,417.35. The IHSG was supported by positive American and European stock indices on the previous day and by strengthening emerging market currencies that felt the impact of higher interest rates in India and Turkey. In Indonesia, consumer, infrastructure and plantation stocks were popular as the current high rainfall is regarded as bringing a positive impact on these sectors.

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The upward revision of the IMF's outlook for global economic growth (raised to 3.7 percent) was able to boost several commodity prices. This then was a reason for investors to purchase mining stocks, which made a positive impact on the performance of Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG) on Wednesday (22/01). Stocks in the consumer and trade sectors were also popular as speculation emerged that demand for consumer goods will rise due to the severe floods in several cities in Indonesia.

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In recent years, the Japanese economy has experienced significant hardships, generated largely by the aftermath of the hurricane and tsunami that hit the country in 2011. But newly adapted stimulus programs (the much-discussed programs of Abenomics) have boosted economic growth rates since that period. As a result, annual GDP is expected to rise to 1.8% for 2014, and these improvements are expected to have a supportive on the performances seen in surrounding economies in the Asia-Pacific region.

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