US retail sales and manufacturing output growth in April rose +0.9% MoM and +1.1% MoM respectively, improving the outlook for US 2Q22 GDP. Wall Street rose significantly supported by technology stocks and growth stocks. Retail sales growth in April was in line with market expectations of +1.0% MoM (Vs. Mar. +1.4% MoM), supported by purchases of motor vehicles and increased spending on restaurants. Meanwhile, April’s manufacturing output growth exceeded expectations (+0.5%
MoM) and March (+0.9% MoM), easing fears of a recession in the US.

JCI closed up 0.7% to 6,644, in line with positive sentiment of April’s trade balance surplus of USD 7.5 billion. This surplus can increase the April forex reserves which had fallen to USD 135.7 billion. Meanwhile, the surplus exceeded market expectations of +USD 4 billion, and March +USD 4.5 billion. In the same period, Indonesia recorded export and import growth in April, at +47.8% YoY and 21.9% YoY. NHKSI Research projects that the JCI will continue to strengthen, moving upwards in the range of 6,600-6,750.

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