JAKARTA (TheInsiderStories) – Most Asian stocks market closed sliding by the end of this week. KOSPI collapsed for 1.75 percent, Hang Seng dropped by 1.1 percent, and Nikkei225 fell by 0.4 percent. Is evil winter is coming to the Asian market?
Last week, United States recorded slowdown economic growth by 3.5 percent in third quarter (3Q), compared to the second quarter 4.2 percent. But consumer spending reached its peak in the last four years.
The price index for gross domestic purchases increased 1.7 percent in the third quarter, compared with an increase of 2.4 percent in the second quarter.
The personal consumption expenditures (PCE) price index increased 1.6 percent, compared with an increase of 2.0 percent. Excluding food and energy prices, the PCE price index increased 1.6 percent, compared with an increase of 2.1 percent.
It said, the increase in real GDP in 3Q reflected positive contributions from PCE, private inventory investment, state and local government spending, federal government spending, and nonresidential fixed investment that were partly offset by negative contributions from exports and residential fixed investment.
Amid Asian stocks market slump, Indonesia’s composite index closed in the green zone, increased slightly by 0.52 percent to 5,784.92 on Friday (26/10). Foreign net buy reached Rp388.87 billion (US$25.92 million), although Rupiah depreciated by 0.19 percent against the greenback to 15,217.
Bank of Indonesia (BI) predicted October inflation to rise slightly, at 0.17 percent month-on-month. But the year-on-year inflation will still be under control at 3.05 percent.
Moreover, current account deficit (CAD) was projected in a range of 3-3.5 percent of Gross Domestic Product (GDP) in 3Q. This widening CAD is caused by deficit trade balance in July and August.
The central bank also estimated that 2018 economic growth will be under midpoint. This year, BI’s estimation on economic growth is 5-5.4 percent. Indonesia’s recent biggest concern is export amidst the decreasing net external demand. Other than US, product demands are slowing down, especially commodity trade with China.
Amid the global economic problems, the corporate financial its expected to moves the stock market today. Some companies will release its third quarter financial report this week.
From global side, this week Bank Of Japan, Bank of England and Brazil will announces its monetary stance. While, Taiwan, Eurozone, France, Italy and Spain wll releases its third quarter (Q3) GDP. And, Singapore, Malaysia, and Hong Kong reported the inflation data.
All this issues will colored the market this week. We expect the evil winter not coming to Indonesia as long as all parties can maintain economic and political stability.
May you have a profitable day.
Written by Linda Silaen and TIS Intelligence Team, Please visit our new website to get more insight on Indonesia’s economy: www.tisintel.com
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