Jakarta. Indonesia’s benchmark stock index fell in early trading Tuesday, mirroring declines in global markets as investors reacted to new US trade tariffs. The Jakarta Composite Index (JCI) dropped 0.63 percent to 6,478.6 by 9:15 a.m. local time, shedding 41.03 points.

The decline follows a strong performance on Monday when the index surged nearly 4 percent to 6,519. 

Market sentiment turned cautious after U.S. President Donald Trump confirmed fresh import tariffs targeting key trading partners. The US imposed a 25 percent tariff on imports from Canada and Mexico and a 10 percent levy on Chinese goods. Beijing hinted at possible retaliatory measures, including restrictions on US agricultural imports such as soybeans.

Asian markets responded negatively, with Tokyo’s Nikkei 225 sliding 1.9 percent to 37,084.83 and Hong Kong’s Hang Seng falling 1.6 percent to 22,666.68. The Shanghai Composite dipped 0.2 percent, while the Taiwan Taiex lost 0.9 percent. South Korea’s Kospi was one of the few gainers, edging up 0.1 percent.

"The JCI faces downside risks amid escalating US-China trade tensions. We expect the index to move within a support range of 6,350-6,450 and resistance at 6,575-6,630," said Fanny Suherman, Head of Retail Research at BNI Sekuritas, in a note Tuesday.

Overnight, Wall Street closed sharply lower as investors braced for the economic fallout of Trump’s tariff policies. The S&P 500 slumped 1.8 percent to 5,849.72, while the Dow Jones Industrial Average lost 1.5 percent to 43,191.24. The Nasdaq Composite posted the steepest decline, plunging 2.6 percent to 18,350.19.

Add as a preferred source on Google +