Today’s Outlook:
• Today, the Asian stock markets are expected to follow the strengthening of US capital markets as investors highlight the development of the Middle East conflict. Major US stock indexes ended in an average of 1% higher on Monday (16/10/23), with the Consumer sector leading the increase in S&P 500 index, as investors were optimistic about the start of earnings season; while transportation and small-cap shares also jumped. Market participants appeared to be taking more positions in risky assets, with safe-haven Gold and Oil prices down, while monitoring the Israeli war in Gaza, which is still heating up, with high death toll, including many women and children, after efforts to arrange a cease-fire stalled. The CBOE Volatility Index eased, while the DJIA posted its biggest percentage gain in a month. S&P500 companies’ third quarter of 2023 results are expected to present a 2.2% yoy increase in profit, up from the 1.3% estimate a week earlier, according to LSEG data on Friday. Philadelphia Fed President Patrick Harker repeated his statement on monetary policy that the central bank may be nearing the end of the interest rate uptrend cycle. The US Dollar and US Treasuries retreated in order following these comments. After yesterday’s Empire State Index explained that the general manufacturing business conditions in New York state tend to worsen. Today, more US economic data will be released such as Retail Sales (Sept.), Industrial & Manufacturing Production (Sept.), and Business & Retail Inventories Ex-Auto for August.
• ASIA MARKETS: Japan released its Industrial Production (Aug.) which fell short of expectations and remained in negative territory at -0.7% although this was an improvement from the previous month’s -1.8%. Indonesia reported a much larger decline in Imports than the decline in Exports in September, causing the Trade Balance (Sept.) figure to post another successful surplus for the 41st consecutive month at USD3.42 billion, managing to be higher than forecast & previous month.
• EUROPE MARKETS: Speaking of Trade Balance, the Eurozone bagged its 3rd consecutive month of surplus at EUR6.7 billion in August, higher than July’s position at EUR6.3 billion. This afternoon, the UK will release a number of economic data related to employment and Wage growth. In the afternoon, Germany and the Eurozone will publish the ZEW Current Conditions & Economic Sentiment for October.
• Despite the optimism surrounding the Asian market, seeing yesterday’s JCI close pushed back after an attempt to break the crucial 6950 Resistance wall was unsuccessful, this time with the JCI Closing position below the third Moving Average Support further strengthens the ongoing Consolidation – Bearish notion. NHKSI RESEARCH reminds investors/traders to stay focused on domestic market conditions and rolling interest, while paying attention to sector rotation to find trading opportunities.

Company News
• ARTO : Collaborating with GOTO to Launch GoPay Tabungan
• DMAS : Achieved Marketing Sales of IDR1.37 T up to 3Q23
• PWON : Cut Marketing Sales Target to IDR1.3 T

Domestic & Global News
• Food Agency Head Reveals Corn Import Plan and Reasons for It
• Diplomats Renew Calls for Gaza Aid; Iran Warns Israel

Download full report HERE.