Most Asian stocks gained after FBI Director James Comey stated that there is no new evidence to warrant charges against US presidential candidate Hillary Clinton in the investigation involving her (private) email activities while in government. Apart from, generally, rising shares in Asia (on the back of risk-on sentiment) this news also caused a sharply strengthening US dollar. Indonesia's benchmark Jakarta Composite Index is the exception, however, having slid 0.29 percent to 5,347.16 points by 09:45 am local Jakarta time.

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Asian stocks are under heavy pressure on Wednesday (02/11) as the latest polls in the USA are suggesting that the US presidential race between market favorite Hillary Clinton and controversial candidate Donald Trump is closer than initially expected. Narrowing polls cause concern about future US economic policy after the election on 8 November 2016. Earlier, Trump expressed criticism on the Federal Reserve, claiming that the US central bank is engaged in politics by maintaining the loose monetary policy.

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Indonesian assets are leading declines in Asia on Wednesday's trading day (05/10) as (global) markets are digesting the latest reports that the European Central Bank (ECB) may withdraw its bond buying program, while statements from US Federal Reserve officials strengthened the case for a Fed Funds Rate hike before the year-end. Lastly, the International Monetary Fund (IMF) cut its forecast for US economic growth in 2016 to 1.6 percent (y/y) from its earlier estimate of 2.2 percent (y/y).

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Indonesian assets performed very well on Monday (03/10). Indonesia's benchmark Jakarta Composite Index surged 1.85 percent to 5,463.92 points, while the Indonesian rupiah appreciated 0.46 percent to IDR 12,983 per US dollar (Bloomberg Dollar Index). Overall, assets are improving worldwide due to easing concerns about the Deutsche Bank case, stabilizing oil prices, and China's stabilizing manufacturing activity. Indonesian assets, however, performed best supported by the government's successful tax amnesty program.

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Indonesia's rupiah currency is performing remarkably well today. By 13:20 pm local Jakarta time the rupiah had appreciated 0.75 percent to IDR 12,943 per US dollar (Bloomberg Dollar Index). There are several factors that are pushing the rupiah in a stronger position. Enny Sri Hartati, economist at the Institute for Development of Economics and Finance (Indef), informed that capital inflows are the result of the government's tax amnesty program and rising foreign direct investment (FDI). Meanwhile, there is the impact of the US presidential debate.

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After the US Federal Reserve decided to leave its interest rates unchanged at the September policy meeting on Wednesday (21/09) Asian stocks surged while emerging market currencies appreciated against the US dollar. Indonesia's benchmark Jakarta Composite Index had surged 1 percent by 11:30 am local Jakarta time, while the Indonesian rupiah had appreciated 0.38 percent to IDR 13,087 per US dollar (Bloomberg Dollar Index). A delay in US monetary tightening makes the higher yielding (but riskier) emerging markets assets an attractive alternative.

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In line with the performance of US stocks overnight, Asian stocks plunged to a six-week low on Wednesday morning (14/09), while Asian currencies are under similar pressure. Investors have become increasingly concerned about weaker-than-estimated growth, while confidence in central banks' efforts to boost economies fades. Meanwhile, there remains a high degree of uncertainty about a looming interest rate hike in the United States. In Asia losses were extended as higher bond yields and excessive volatility encourage investors to unwind positions.

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As expected, emerging markets in Asia, including Indonesia, were negatively affected by the speech of Federal Reserve Chair Janet Yellen in Jackson Hole last week. Her speech - touching the topics of solid new jobs creation - provided ammunition for analysts and investors to raise speculation about a near-term US Fed Funds Rate hike. Indonesia's benchmark Jakarta Composite Index fell 1.25 percent to 5,370.76 points, while the Indonesian rupiah depreciated 0.42 percent to IDR 13,267 per US dollar (Bloomberg Dollar Index).

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Most Asian stocks slid on Monday (22/08) as there occurred renewed speculation about a Fed Funds Rate hike in September 2016 after hawkish statements from Federal Reserve officials, while crude oil prices fell nearly 2 percent in Asian trade after Iraq indicated that it seeks to boost exports, hence effectively snapping a seven-day winning streak. However, Indonesia's benchmark Jakarta Composite Index (IHSG) was up 0.21 percent to 5,427.17 points on the first trading day of the new week.

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After six years of steady decline, the Indonesian rupiah is likely to have appreciated against the US dollar at the end of 2016. So far this year, the currency of Indonesia has appreciated 4.8 percent to IDR 13,126 against the greenback (Bloomberg Dollar Index) supported by capital inflows, particularly into government bonds and stocks as well as the delay in further monetary tightening in the USA. Although the rupiah should depreciate a bit as we go towards the end of the year, it is set to finish the year at a stronger level than it started.

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Indonesian stocks plunged considerably on Thursday (02/10). The country’s benchmark stock index (Jakarta Composite Index, abbreviated IHSG) declined 2.73 percent to 5,000.81 points, the largest drop in almost six months. This poor performance was caused by both external and internal factors. Externally, various weak economic data from the USA and Europe as well as an appreciating yen impacted negatively on Asian stock indices. Internally, market participants responded negatively toward the inauguration of the new parliament.

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Although Indonesia’s September 2014 inflation (0.27 percent m/m) and appreciating rupiah exchange rate had a positive impact on the performance of Indonesia’s benchmark stock index (Jakarta Composite Index, abbreviated IHSG) on Wednesday (01/10), its gain was limited by declining indices on Wall Street on the previous day as well as Indonesia’s August trade deficit (USD $318.1 million), which resulted in foreign net selling of worth IDR 388 billion of Indonesian stocks. The IHSG climbed 0.06 percent to 5,140.91 points.

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The benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) rose 0.18 percent to 5,142.01 points on Monday (29/09) despite the sharp depreciation of the Indonesian rupiah exchange rate. Possibly market participants took advantage of relatively cheap blue chip stocks after the 1.3 percent drop on Friday (26/09) caused by negative market sentiments brought about by the parliament’s passing of a bill which abolishes direct voting of regional leaders. Foreign investors recorded net selling of IDR 542.4 billion.

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In line with the trend on other Asian stock indices, the benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) fell on Monday (22/09) amid profit taking after three days of gains. Not even the appreciating rupiah exchange rate and net buying of foreign investors (IDR 26.6 billion) were able to push Indonesia’s index into the green zone. The IHSG declined 0.15 percent to 5,219.80 points. All sectors on the Indonesia Stock Exchange (IDX) fell except for the consumer goods and finance sectors.

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The benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) closed 1.12 percent higher on Wednesday (17/09) supported by Tuesday’s positive stock indices on Wall Street as well as speculation that the US Federal Reserve will not raise its key interest rate yet. Today (17/09), the Federal Reserve will conclude its Federal Open Market Committee (FOMC) meeting. Lastly, after weak economic data, it was reported that China’s central bank (PBOC) injected USD $82 billion into the country's five largest banks.

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Stock markets in the Asia Pacific were down on Tuesday (16/09) as investors are awaiting the results of the Federal Open Market Committee (FOMC) today (Wednesday 17/09) and are focused on the condition of the Chinese economy. Moreover, investors were disappointed to hear that next Indonesian President Joko Widodo (Jokowi) will appoint 16 party politicians to lead ministries in his cabinet (which is in contrast with his initial plan to appoint technocrats). Lastly, the Indonesian rupiah exchange continued to depreciate.

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The Indonesian rupiah exchange rate depreciated 0.54 percent to IDR 11,822 per US dollar in the past week (based on the Bloomberg Dollar Index). Several internal and external factors influenced the currency’s performance over the past week, such as increased US dollar demand from local Indonesian companies, Bank Indonesia’s decision to leave the BI rate unchanged and the improving US economy. Lastly, the structural current account deficit (triggered by expensive oil imports) remains a problem for investors.

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The central bank of Indonesia (Bank Indonesia) kept its key interest rate (BI rate) at 7.50 percent for the tenth consecutive month as inflation is under control and well within the year-end target of the central bank (3.5-5.5 percent). The lending facility and deposit facility were kept at 7.50 percent and 5.75 percent, respectively, at Thursday’s Board of Governor’s Meeting (11/09). The central bank also expects that the current interest rate environment is capable of curbing the country’s wide current account deficit.

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The benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) declined 0.92 percent to 5,136.86 points on the last trading day of the week. Seven of the ten sectorial indices fell, led by the finance sector (-1.66 percent), followed by consumer goods (-1.50 percent) and manufacturing (-1.34 percent). The main reason for this poor performance is that investors are again looking at the true fundamentals of the Indonesian economy instead of optimism about Joko Widodo becoming Indonesia’s seventh president.

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The benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) rose 0.37 percent to 5,184.48 on Thursday’s trading day (28/08) on increased expectation that the transition from the Susilo Bambang Yudhoyono (SBY) government to the Joko “Jokowi” Widodo government will be smooth and efficient evidenced by the pair's meeting in Bali to discuss various matters regarding the transfer of power. For investors, this meeting led to increased optimism. Stocks in the property and miscellaneous sectors led the gain.

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