Analysis of Asian Stock Index Performance on June 12 2024: Investors Focus on Inflation Data and Potential US-Russia Trade Sanctions

AEINews – Stock indices in Asia showed varying performance at the close of Wednesday, June 12 2024. This was caused by investors who were analyzing inflation data from several large economies in Asia such as China, Japan and India. Japanese Producer Price Index (PPI) data shows an increase in inflation at the producer level of 2.4 percent in May 2024, the highest since August 2023. This figure is higher than the increase of 1.1 percent Y/Y in April 2024 and exceeds market expectations which predicted an increase of 2 percent. The PPI has recorded increases for 40 consecutive months, raising concerns that companies will pass on price increases to consumers, which could lead to higher consumer inflation.

Investors also paid attention to news that the US government was considering imposing broader trade sanctions on semiconductor exports to Russia. The move could potentially target distributors or retailers in China and Hong Kong, which are key suppliers to various industries in Russia. The US government's tighter scrutiny of Chinese companies is raising concerns about worsening trade relations between the two countries. Previously, in early 2024, the US Government had increased import tariffs on several key Chinese industries.

Securities agent CEO, William Surya Wijaya, predicts that the JCI will move within the support range at level 789 and resistance at 7034. According to him, the JCI movement pattern is still within a reasonable consolidation range amidst fluctuations in the Rupiah exchange rate, and in the short term there are many opportunities for investors to make accumulated purchases if a minor correction occurs, considering that economic conditions are still stable based on the data that has been released. However, year-to-date (ytd) capital outflows still need to be watched closely. Today, the JCI is expected to experience limited weakness, with preferred shares remaining in large companies such as ITMG, ASII, ICBP, TLKM, TBIG, LSIP, and BSDE.

Source: emitennews.com