On the first trading day after the terrorist attacks in Paris (leaving 129 people dead and hundreds injured), stocks declined in Asia as investors are cautious. Although markets had one weekend to digest the news, it is still expected that the tragedy in Paris will cause a sharp yet short-term impact on global equity markets. Apart from terrorism, volatile oil prices as well as concern about China's economy and uncertainty about the timing of a US interest rate hike continue to plague markets.

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Asian shares are facing pressures on Friday (13/11) due to lower oil prices and increasing expectation that the US Federal Reserve will raise its key Fed Fund Rate by 25 basis points in December. Resource stocks are dragging down stock indices in Australia, Hong Kong and China by more than one percent. Indonesia's benchmark Jakarta Composite Index, however, is bucking the trend in Asia, having risen 0.51 percent to 4,485.12 points by 10:20 am local Jakarta time amid red indices in Asia. Meanwhile, the US dollar is strengthening against Asian currencies but not as sharply as initially predicted.

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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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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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Most analysts expected that Indonesia’s benchmark stock index (Jakarta Composite Index) would be plagued by another selloff on Tuesday (25/08) as the major stock indices in the USA and Europe plunged yesterday, while commodity prices hit new lows (crude oil fell below USD $40 per barrel for the first time since 2009). Moreover, Shanghai and Japan opened in the red. However, reality proves differently. Around 11:25 am local Jakarta time the Jakarta Composite Index was up 1.77 percent to 4,237.28 points.

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Indonesian stocks fell sharply after the market opened on Monday (27/04). Indonesia’s benchmark Jakarta Composite Index had dropped 2.61 percent to 5,293.73 points by 12:00 local Jakarta time. This poor performance is most likely due to market participants wait & see attitude before the release of Indonesia’s Q1-2015 GDP growth figure (to be released at the start of May) and the release of Indonesian companies’ Q1-2015 financial earnings reports. Moreover, Indonesia will soon execute several foreign convicted drug traffickers.

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The Indonesian rupiah exchange rate depreciated 0.14 percent to IDR 11,665 per US dollar on Tuesday (25/02) based on the Bloomberg Dollar Index. The currency's depreciation was due to US dollar demand from Indonesian importers while offshore funds engaged in profit taking as the rupiah is the best performer in February 2014 among 31 major currencies tracked by Bloomberg (against both the euro and US dollar). The rupiah is also the best-performing Asian currency this year so far.

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The central bank of the United States, the Federal Reserve (FED), announced that it will start winding down its quantitative easing program in January 2014. Currently, the Fed purchases USD $85 billion worth of bonds per month but this amount will be reduced to USD $75 billion next month. The Fed came to this decision as prospects of the US labor market have shown a marked improvement, while economic growth is expected to accelerate to between 2.8 and 3.2 percent in 2014 and between 3.0 to 3.4 percent in 2015.

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Exports of China in August 2013 surpassed expectations and provides hope that the world's second largest economy is resuming its admirable growth. Overseas shipments were reported to have grown 7.2 percent year-on-year, while analysts expected a 5.5 percent growth rate. In July, China's exports had already recorded a 5.1 percent growth compared to the same month in 2012. On the other hand, imports in China grew slower than had been forecast at 7 percent (YoY). The country's trade surplus reached over USD $28 billion.

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Both China's imports and exports in July 2013 showed a rebound as they increased above expectation. Exports of the world's second-largest economy rose 5.1 percent (YoY), while imports surged 10.9 percent (which suggest improving domestic consumption). These results led to most Asian markets being up on Thursday (08/08). China's economy has been slowing down amid weak global demand and efforts to avert a credit boom. In 2012, the country's economy expanded 7.8 percent, the slowest pace in 23 years.

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Despite non-conducive market sentiments, there was no stopping to the Indonesia stock index (IHSG) as it managed to reach its next psychological boundary on Thursday 18 April: 5,000 points. A fall in American energy and telecommunication stocks on the previous day - after corporate data indicated less-than-expected performances in the first quarter - buried hopes that the Dow Jones Index would hit another peak. As a result Asian stock indices were mostly negative.

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Indonesia's main stock index, the IHSG, continued its rally on Wednesday 17 April due to increased US monthly Housing Starts, decreased US inflation, as well as financial results of companies that indicated revenues and net profits exceeded expectations. Moreover, the IMF upgraded its outlook for East Asia's economic, which made investors buy stocks. Within Indonesia, there was enthusiasm regarding Q1-2013 corporate results and dividend payouts, which offset uncertainties about the new fuel policy.

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Most of us expected the Jakarta composite index (IHSG) to weaken on Tuesday 16 April 2013 amid mixed Asian stock indices and significantly weakened American and European indices on Monday (that responded to reports about both China's slowing economic growth and weak economic figures of America). Moreover, bomb explosions at the finish line of the marathon of Boston were expected to complicate the performance of the IHSG. But concerns turned out in vain.

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The Jakarta Composite Index (IHSG) did not make a good start on the first trading day of the new week. Similar to last week's Monday, it were falling American stock indices on Friday that impacted on Monday's IHSG performance: US Retail Sales, Michigan Consumer Sentiment, and commodity prices were topics that were not well-received by market players. Moreover, weak economic data from China made many foreign investor decide to sell their Indonesian assets.

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Rising American stock indices on Wednesday provided solid support for stock indices around Asia the following day, including Indonesia's main index (IHSG). Amid this global positivity, market players were eager to add stocks to their portfolios. News from Japan, China and the Indonesian central bank's announcement to maintain its low benchmark interest rate were well-received, particularly by domestic market players. It made the IHSG rise to 4,924.26, a 0.96 percent gain.

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Although most Asian stock indices went up on Wednesday (10 April 2013), the Indonesia Stock Exchange (IHSG) could not cling on to their movement. In fact, even the main index of South Korea, a country plagued by political tensions, reported a rise. The IHSG was not able to follow suit due to investors' profit taking. Foreign market participants recorded a net sell, particularly Indonesia's blue chip stocks, which caused the index to end at 4,877.48, a 0.45 percent fall.

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On Monday, the Dow Jones Index gained as corporate results of Q1-2013 are estimated to be good. This subsequently had a positive impact on Asian stock indices on Tuesday, including Indonesia's main index (IHSG). Moreover, positive news from both Australia and China were well-received as well as the higher metal price (reflected by Hong Kong's rising Hang Seng Index). Amid this positivity, investors took the opportunity to enlarge their stock portfolios.

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Last week Friday, American stock markets were not able to maintain a positive trend due to Nonfarm Payrolls that increased below expectation. Moreover, concerns about a spreading bird flu epidemic in China in combination with increased political tensions in Korea impacted on Monday's trading day (8 April 2013) of the Indonesia Stock Exchange (IHSG). The index had to absorb a sell-off, thus closing lower to 4,897.52, an 0.58 percent decline.

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The Indonesia Stock Exchange (IHSG) experienced a mixed week. At the start of the week, the index rose, but towards the end of the week it weakened, although ending in the green on Friday. Recently, the IHSG has hit record levels, and this makes market participants worried that the index might fall in case there emerge negative market sentiments. These concerns are what made the index turn away from the next psychological boundary: 5,000 points.

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On Thursday 4 April 2013, market players were hoping that the Indonesia Stock Exchange (IHSG) would climb beyond the psychological level of 5,000. However, the presence of negative market sentiments - and the overbought condition of the IHSG - were used as reasons to engage in profit taking. It consequently pushed down Indonesia's main financial market indicator to the level of 4,922.61, an 1.18 percent fall compared to Wednesday's trading day.

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