JCI expected to be bogged down by US-China trade war

JCI expected to be bogged down by US-China trade war

Jakarta (ANTARA) - Negative sentiments arising from the trade war between the United States and China is likely to cast gloom over the Composite Stock Price Index in the Indonesia Stock Exchange (IDX) on Tuesday.         

The Jakarta Composite Index (JCI) opened at 6,081.4, dropping 53.99 points, or 0.88 percent, whereas the index of the 45 leading stocks, or LQ45, plummeted 13.32 points, or 1.39 percent, to 947.55

"The JCI's movement on stock trading today is still ebbed by negative sentiment over the trade talks between the United States and China failing to yield a deal. Nevertheless, domestic factors have had a minimum positive catalytic effect on the market," Alfiansyah Head of Research at Valbury Securities in Jakarta stated on Tuesday.

Despite trade talks between the United States and China in limbo, the June G-20 Summit in Japan offers a platform and opportunity for negotiations. President Donald Trump and Chinese President Xi Jinping are likely to hold a meeting. Earlier, Trump had also affirmed that the talks would ensue despite US tariffs raised from 10 percent to 25 percent on $200 billion of Chinese goods remaining valid.

In a knee-jerk move against Trump's decision, China's latest retaliatory tariffs on $60 billion worth of US goods will come into effect on June 1, 2019, adding up to 25 percent to the cost of US products.

Asian regional stock markets this morning also slumped, including the Nikkei Index that plummeted 157.25 points, or 0.74 percent, to 21,034.03; the Hang Seng Index decreased 476.66 points, or 1.67 percent, to 28,073.58; and the Straits Times Index weakened 30.69 points, or 0.95 percent, to 3,203.59.