- Jakarta Stock Exchange Composite down 0.57%, led by losses in infrastructure, finance, and agriculture.
- Asian indices rise as Japan’s central bank hikes rates to 0.5%, a 15-year high.
- Pakistan stock market adds over 61,000 new accounts amid improved investor confidence.
The Jakarta Stock Exchange Composite fell 0.57%, weighed down by losses in the IDX Infrastructure, Finance, and Agriculture sectors. Despite the downturn, standout performers included Golden Flower Tbk PT, which surged 24.63% to a five-year high, and Lion Metal Works Tbk, climbing 24.53% to its 52-week peak.
Asian markets, however, painted a more optimistic picture. Japan’s Nikkei 225 rose 0.3% following a Bank of Japan decision to increase its benchmark interest rate to 0.5%, marking the end of an era of ultra-low rates.
Rate Hikes, Investor Growth, and Market Momentum Across Asia
The Bank of Japan’s decision to raise interest rates to 0.5% reflects a strategic pivot aimed at curbing inflation, which reached 3% in December. This marks a significant shift in Japan’s monetary policy and contributed to gains in its Nikkei 225 index. Regional confidence was further bolstered by stable oil prices and upbeat U.S. economic performance, with the S&P 500 reaching record highs.
Meanwhile, Indonesia’s stock market experienced a downturn, with the Jakarta Stock Exchange Composite dropping 0.57%. Despite broader losses, certain stocks like Golden Flower Tbk PT and Lion Metal Works Tbk demonstrated resilience, hitting multi-year highs. However, the session also saw pronounced declines in stocks such as Remala Abadi Tbk PT.
Pakistan’s stock market saw remarkable growth, with 61,862 new accounts added between July and December 2024. The Pakistan Stock Brokers Association (PSBA) highlighted this as a record period for investor participation. Economic stability, policy reform discussions, and attractive dividend yields were key factors driving the market’s expansion.
Globally, commodities and currency markets showed steady performance. Crude oil prices remained largely unchanged, while gold futures rose modestly. The U.S. dollar weakened slightly against the yen, reflecting the impact of Japan’s monetary policy changes.
Global markets displayed a mix of challenges and opportunities, with Indonesia’s losses offset by gains across Asia and investor optimism in Pakistan’s stock market growth.
“Confidence is contagious. So is lack of confidence.” – Vince Lombardi.
