Asian stock markets are compactly weak, the following are the triggers

Reporter: Ika Puspitasari | Editor: Tendi Mahadi

KONTAN.CO.ID – JAKARTA. The Composite Stock Price Index (JCI) weakened by 2.06% to the level of 6,561.55 on Friday (26/11). JCI movement at the end of this week is in line with the decline in Asian stock markets.

Asian regional stock markets, such as the Nikkei index, fell 2.53% to 28,751.62, the Hang Seng index fell 2.67% to 24,080.52, while the Straits Times index fell 1.72% to 3,166.27.

Binaartha Sekuritas analyst Ivan Rosanova revealed, the weakening of regional stock markets on Friday (26/11) was more influenced by news about the possibility of an acceleration tapering by the Fed after higher-than-expected inflation figures in the last 2 months.

“Other sentiments that may increase investors’ confidence to take anticipatory steps are concerns about the new variant of the corona virus B.1.1.529 which is allegedly mutating faster than the Delta variant,” he explained to Kontan, Friday (11/26).

Also Read: JCI slumped 2.36% a week to 6,561 as of Friday (11/26)

The same thing was conveyed by Indo Premier Sekuritas analyst, Mino. He believes that the correction in regional stock markets is more due to global sentiment related to the soaring Covid-19 cases in Europe and the new variant of the Covid-19 virus.

Meanwhile, from within the country, Mino added that the sentiment related to the job creation law decision did not have much impact on the JCI movement. “Effective, but not too big because there is room to improve it with a two-year deadline,” added Mino.

Ivan also considered that the sentiment related to the decision on the Job Creation Act did not have a significant effect on the market correction.