Indonesian Shares Expected to Maintain their Current Range on Thursday
The Asian market is gearing up for a potentially upbeat trading session on Thursday, buoyed by optimism from recent global earnings reports and a continued rally in tech shares. This positive sentiment follows strong performance in US stock markets and an easing of trade tensions between the US and China.
Tech shares remain a significant driving force, fueling risk appetite among Asian investors. Corporate earnings results, especially from the US and Asia, have generally surpassed expectations, reinforcing confidence in sustained economic growth and corporate profitability.
The extension of the tariff pause between the US and China by 90 days has alleviated some uncertainty, benefiting Asian markets reliant on supply chains involving China. Additionally, hopes for a Federal Reserve interest rate cut continue to support markets, as inflation data in the US showed signs of moderation.
This optimistic outlook is reflected in the performance of various Asian indices, such as Tokyo's Nikkei 225 and Hong Kong's Hang Seng, which have shown strong gains recently.
However, it's important to note that some warnings persist about overall valuation levels and economic fundamentals globally, especially in the US. If disappointing data emerges later, it could potentially temper enthusiasm.
Meanwhile, in other news, the US faces a threat of U.S. sanctions on its oil exports after August 8 if it fails to end its attempt to annex Ukraine.
In the corporate sector, Disney (DIS), Snap (SNAP), Super Micro Computer (SMCI), Shopify (SHOP), and McDonald's (MCD) all reported mixed or better-than-expected third quarter results. Apple (AAPL) announced plans to invest $100 billion to expand its US operations and increase its total investment in the US over the next four years to $600 billion.
In the Indonesian market, the Jakarta Composite Index (JCI) closed at 7,503.75 on Wednesday, after trading between 7,502.01 and 7,549.27. The JCI finished slightly lower on Wednesday, with losses from financial and food companies offset by gains from cement and resource stocks.
The Dow, NASDAQ, and S&P 500 all finished higher on Wall Street, with the Dow improving by 0.18 percent, the NASDAQ by 1.21 percent, and the S&P 500 by 0.73 percent.
Various changes in the stock prices of Bank CIMB Niaga, Bank Mandiri, Bank Danamon Indonesia, Bank Negara Indonesia, Bank Central Asia, Bank Rakyat Indonesia, Indosat Ooredoo Hutchison, Indocement, Semen Indonesia, Indofood Sukses Makmur, United Tractors, Astra International, Energi Mega Persada, Astra Agro Lestari, Aneka Tambang, Vale Indonesia, Timah, and Bumi Resources were also observed.
Crude oil lost early gains on Wednesday, with West Texas Intermediate crude for September delivery down $0.96 or 1.47 percent at $64.20 per barrel.
[1] Source: Reuters, CNBC, Bloomberg [2] No specific source was provided for this information. [3] Source: Reuters, CNBC, Bloomberg [4] Source: Reuters, CNBC, Bloomberg
The strong performance in US stock markets, notably Tech shares, has positively impacted the Asian business sector, spurring Asian investors' risk appetite. This trend is further fueled by corporate earnings results, particularly from the US and Asia, which have exceeded expectations, boosting confidence in sustained economic growth and corporate profitability. Additionally, the financial sector in Indonesia experienced varying stock price changes in Bank CIMB Niaga, Bank Mandiri, and others.
