JCI Turns Red as US Presidential Race Remains Too Close to Call
Jakarta. The Jakarta Composite Index (JCI) weakened in Wednesday’s first trading session. Although JCI opened with gains, it turned negative as investors awaited the outcome of the 2024 US presidential election, which may take days to finalize.
As of 09:41 a.m. Jakarta time, the JCI had fallen by 34.3 points, or 0.46 percent, to 7,457, with 203 stocks advancing, 260 declining, and 170 remaining unchanged.
Local analysts have shown a preference for Kamala Harris over Donald Trump, suggesting her economic policies would promote stability and growth for Indonesia.
“In the short term, a Republican win could boost US equities but create volatility in Indonesia, especially if Trump’s policies put pressure on Indonesian exports, as the US is Indonesia's largest trade surplus partner,” said Helmy Kristanto, an analyst at BRI Danareksa Sekuritas, adding that broad tariffs could force Indonesian exporters to lower prices to stay competitive.
Myrdal Gunarto, a global markets economist at Maybank Indonesia, noted that a Harris victory could lead to lower market volatility and support sustained economic growth, aligning with trends under the Biden administration.
Meanwhile, US election results are still coming in. Polls have closed in critical battlegrounds — Pennsylvania, Georgia, Michigan, Arizona, Wisconsin, and North Carolina — but outcomes there remain too close to call.
Both Harris and Trump need at least 270 electoral votes to win the presidency. As of 10:00 a.m. in Jakarta, Trump led with 198 electoral votes, while Harris had 99, according to AP data.
Trump won Florida, a state that has leaned Republican in recent cycles, as well as other GOP strongholds like Texas, South Carolina, and Indiana. Harris secured Democratic bastions including New York, Massachusetts, and Illinois.
Asian markets were mostly higher on Wednesday, buoyed by a rally on Wall Street as Americans cast votes in a pivotal election. However, the extended counting period could contribute to market uncertainty.
Futures for the S&P 500 rose 0.7 percent, while futures for the Dow Jones Industrial Average gained 0.6 percent.
Investors are also awaiting the Federal Reserve's decision on interest rates, with many expecting a second consecutive rate cut.
In Asia, Japan’s Nikkei 225 rose 0.7 percent to 38,725.95, South Korea’s Kospi edged up 0.2 percent to 2,582.88, and Australia’s S&P/ASX 200 increased 0.7 percent to 8,190.00. However, Hong Kong’s Hang Seng index dropped 1.1 percent to 20,772.03, while the Shanghai Composite index was up 0.1 percent to 3,388.94.
On Tuesday, US stocks rallied as voters went to the polls and economic data showed continued strength. The S&P 500 rose 1.2 percent to 5,782.76, the Dow climbed 1 percent to 42,221.88, and the Nasdaq Composite gained 1.4 percent to 18,439.17.
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