Stock market in Indonesia potentially opening with a decline on Wednesday
Asian Markets Show Mixed Performance Amid Trade Tensions
Asian markets showed a mixed but generally positive performance at the start of August 2025, with notable gains in Tokyo, South Korea, Hong Kong, and Australia, while India’s index declined amid trade tensions with the US.
The renewed US tariff concerns and unresolved details in US-China trade relations added uncertainty, yet expectations of a US Federal Reserve rate cut and strong corporate earnings boosted market sentiment.
Japan’s Nikkei 225 rose about 0.6%, South Korea’s Kospi surged approximately 1.4%, Hong Kong’s Hang Seng about 0.3%, and Australia’s ASX 200 increased by around 1.1%. These gains reflect positive momentum in the region.
Meanwhile, India’s Sensex dropped 0.5% due to US trade demands on oil imports from Russia amid geopolitical concerns, highlighting how trade issues are impacting specific markets.
US-China trade tensions remain fragile, with uncertainty over tariff extensions beyond August 12 potentially triggering sharp tariff increases, contributing to ongoing market jitters. However, underlying investor optimism is sustained by expected US Fed interest rate cuts in September and strong corporate earnings, which could moderate the negative impact of tariffs on markets.
Though the Indonesian stock market is not explicitly mentioned in the search results, given Indonesia’s exposure to global trade dynamics, tariffs, and US-China relations, today’s index performance would likely reflect cautious trading, influenced by these broader regional and global factors.
In other news, the Jakarta Composite Index (JCI) is currently above the 7,515-point plateau. The S&P 500 dropped 30.75 points or 0.49 percent to close at 6,299.19.
In the US, the lead from Wall Street is soft, with the major averages opening slightly higher but quickly turning lower and closing near session lows. The Dow Jones Industrial Average slipped 61.90 points or 0.14 percent to finish at 44,111.74. The NASDAQ Composite sank 137.03 points or 0.65 percent to end at 20,916.55.
Breaking News: The Institute for Supply Management unexpectedly showed a modest slowdown in the pace of growth by U.S. service sector activity in July. President Donald Trump plans to announce new tariffs on semiconductors and chips as soon as next week.
In the European markets, they were mixed, and US bourses were down on Tuesday. The JCI finished modestly higher on Tuesday, with gains from financial shares, cement companies, and some resource companies. Indosat Ooredoo Hutchison sank 0.45 percent, Indocement skyrocketed 8.60 percent, Semen Indonesia jumped 2.03 percent, Indofood Sukses Makmur lost 0.60 percent, United Tractors shed 0.61 percent, Energi Mega Persada spiked 4.39 percent, Astra Agro Lestari rallied 2.22 percent, Aneka Tambang climbed 1.03 percent, Vale Indonesia tanked 2.12 percent, Timah retreated 1.49 percent, Bumi Resources advanced 0.90 percent, and Astra International was unchanged.
Crude oil prices fell on Tuesday, with West Texas Intermediate crude for September delivery slumping $1.05 or 1.58 percent to $65.24 per barrel. The Indonesia stock market has moved higher in two of three trading days since a two-day slide. Trump also mentioned planned tariffs on pharmaceuticals imported into the US could reach as high as 250 percent.
- Amidst concerns over US tariffs and uncertain trade relations between the US and China, Asian markets display a mixed but largely positive performance in August 2025, with investing in stock-market sectors such as Japan's Nikkei 225, South Korea's Kospi, Hong Kong's Hang Seng, and Australia's ASX 200 showing notable growth.
- Despite the negative impact of tariffs on markets, finance experts attribute the increased optimism to expected US Federal Reserve interest rate cuts in September and strong corporate earnings, factors that could moderate those negative impacts. Meanwhile, specific markets such as India's Sensex, influenced by US trade demands on oil imports from Russia amid geopolitical concerns, demonstrate a decline.
