IDX strengthens 2.68 points on Monday morning

IDX strengthens 2.68 points on Monday morning

Illustration - the movement of IDX index at the Indonesia Stock Exchange (ANTARA FOTO/Sigid Kurniawan/aa/Su)

Jakarta (ANTARA) - The composite share price index at the Indonesia Stock Exchange (IDX) is forecast to rise this week in the midst of the intensifying US-China trade war tensions.

The IDX increased 2.68 points, or 0.04 percent, to 6,331.15, on Monday morning, while the index of the 45 most liquid stocks, or LQ45, was up 0.55 points, or 0.05 percent, to 996.31.

Bank Indonesia's interest rate policy is expected to drive economic growth. However, the external sentiment arising from the US-China tariff battle will impede the movement of the Indonesian stock, Valbury Sekuritas Chief Researcher Alfiansyah explained in Jakarta on Tuesday.

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"The sentiment will prompt the IDX index to hover in mixed directions, though it has an opportunity to strengthen in share trading this week," he noted.

China and the United States have begun imposing additional tariffs on one another’s imported goods on Sunday (Sept 1) in the recent intensification of their battering trade war that has sent shockwaves through their economy.

Beijing levied a five-percent duty on the import of US fuel oil, marking the foremost time the fuel has been targeted since the trade war began a year ago. In the meantime, the United States intends to impose a 15-percent duty on the import of goods comprising smart speakers, Bluetooth headphones, and footwear valued at over US$125 billion from China

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As a knee-jerk reaction, China will impose surcharges on several goods on the list of targeted imports from the United States worth US$75 billion.

Among Asian regional markets that weakened on Tuesday morning were Nikkei plummeting 50.38 points, or 0.24 percent, to 20,653.99; Hang Seng nosediving 205.82 points, or 0.8 percent, to 25,518.91; and the Straits Times Index lowering 23.3 points, or 0.75 percent, to 3,088.22.

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