Today’s Outlook:

• The Nasdaq Composite and S&P 500 moved higher on Tuesday due to a strong gain in Palantir, as Wall Street sought stable footing following the latest developments on the global trade front. The tech-heavy index jumped 1.35% to 19,654.02, while the S&P 500 rose 0.72% to 6,037.88. The Dow Jones Industrial Average climbed  134.13 points, or 0.3%, to 44,556.04. Palantir shares popped about 24% on fourthquarter results that beat analysts’ expectations and had hit a fresh record high. Other Big Tech names such as Nvidia were moving in sympathy with Palantir’s climb. The chip giant advanced 1.7% during the session. The Chinese government slapped tariffs of up to 15% on U.S. imports of coal and liquefied natural gas and 10% higher duties on crude oil, farm equipment and selected cars, effective Feb. 10. The move comes after the U.S. agreed to pause more aggressive levies on Canada and Mexico. Canadian Prime Minister Justin Trudeau announced in a post on social media site X on Monday evening that President Donald Trump agreed to halt the implementation of tariffs against Canada for at least 30 days. Earlier on Monday, Mexican President Claudia Sheinbaum announced that duties on Mexico imports to the U.S. would also be halted for a month.

• MARKET SENTIMENT: There is a flurry of Economic data publications on Wednesday. Starting with the US January ADP NonFarm Employment Change is forecasted to gain from 122K to 148K. However, US’ January S&P Global Services PMI is forecasted to take a slip from 56.8 to 52.8. ISM will also be publishing its January data for Non-Manufacturing PMI (forecast: 54.2) and Prices. US Crude Oil Inventory data will also be released. In Indonesia, GDP Growth for 4Q24 will be released with an anticipation to have a more upbeat result of 4.98% YoY (vs 3Q24’s 4.95%)

• FIXED INCOME & CURRENCIES: The U.S. dollar index (DXY) was down 0.95% at 107.96 while the Canadian dollar was weaker and the Mexican peso was stronger. The U.S. dollar edged lower on Tuesday as President Donald Trump’s tariff threats were interpreted more as a negotiating tactic rather than an end goal, a day after he suspended planned measures against Mexico and Canada. However, the new Trump administration imposed additional 10% tariffs on imports from China effective from early Tuesday and currency analysts said they expected high sensitivity to tariff developments and volatility to persist. The yield on the 10-year Treasury slid on Tuesday as traders assessed global trade tensions and awaited more economic data. The benchmark yield was down more than 3 basis points to trade at 4.511%, while the 2- year Treasury yield fell less than 5 basis points at 4.216%. One basis point is equal to 0.01%, and yields and prices move in opposite directions.

• EUROPEAN MARKETS: The pan-European Stoxx 600 ended the day 0.22% higher. UBS shares fell 7% after the lender’s fourth-quarter results and up to $3 billion share buyback plans failed to impress. European stock markets closed higher Tuesday after U.S. President Donald Trump’s decision overnight to delay tariffs on Canada and Mexico raised hopes that Europe could also avoid duties. The move higher comes after European stocks slumped on Monday as investors reacted to Trump’s decision to impose trade tariffs on Canada, Mexico and China, and threatened to introduce levies on goods from the European Union and U.K.

• ASIAN MARKETS: Asia-Pacific markets rose Tuesday after Donald Trump paused tariffs on Mexico for a month, while Canada also said the U.S. president had put on hold proposed tariffs on its exports. Hong Kong’s Hang Seng index was up 2.83% in its last hour of trade, as China slapped tariffs on U.S. imports, in retaliation to the U.S. duties on its exports. China levied tariffs of up to 15% on U.S. imports of coal and liquefied natural gas and 10% higher duties on crude oil, farm equipment and selected cars from the U.S. This move comes just as Trump’s additional 10% tariff across all Chinese imports into the U.S. came into effect at 12:01 a.m. ET on Tuesday. Chinese markets remain closed for the Lunar New Year holiday. Japan’s benchmark Nikkei 225 ended 0.72% higher at 38,798.37, while the broader Topix index advanced 0.65% to 2,738.02. South Korea’s Kospi rose 1.13% to end the day at 2,481.69 while the small-cap Kosdaq gained 2.29% to close at 719.92. Australia’s S&P/ASX 200 closed flat at 8,374, erasing earlier gains. India’s benchmark Nifty 50 was up 1.19%, while the BSE Sensex index rose 1.12% as of 1.pm local time.

– The Chinese yuan edged up 0.27% to 7.2796 per dollar in offshore trading. There is no official yuan trading until Wednesday, with mainland markets still closed for Lunar New Year festivities.

• COMMODITIES: – OIL prices pared earlier losses on Tuesday after an official said U.S. President Donald Trump plans to restore his “maximum pressure” campaign on Iran in a bid to drive down Iranian oil exports to zero, which offset some weakness from tariff drama between Washington and Beijing. The U.S. official told Reuters that Trump’s directive orders the U.S. Treasury secretary to impose “maximum economic pressure” on Iran, including sanctions and enforcement mechanisms on those violating existing sanctions. U.S. West Texas Intermediate (WTI) crude fell 46 cents, or 0.63%, to close at $72.70. It fell more than 3% to its lowest since late December during the session, amid trade war fears between the U.S. and China. Global benchmark Brent crude futures rose 24 cents, or 0.32%, to close at $76.20. GOLD prices regained an all-time high on Tuesday, driven by investors seeking the safe-haven asset after China retaliated with tariffs on the U.S. in response to President Donald Trump’s tariffs. Spot gold gained 1.1% to $2,843.06 per ounce after hitting a record high of $2,845.14 earlier in the session. U.S. gold futures rose 0.6% to $2,873.7.

• JCI stayed in the same sideways range between 6952 and 7191. With yesterday posting a Net Foreign Sell of IDR 204.75 bn in regular markets, this marks a consecutive Net Foreign Outflow that has been on-going since last year. Yet Rupiah strengthened against the dollar (-0.68%). 4Q24 Indonesia GDP numbers will also be released with anticipation to be 4.98% YoY. For the long-term, NHKSI RESEARCH views an incoming rally as RSI forms a positive divergence. NHKSI RESEARCH advises traders to maintain a WAIT & SEE attitude at the end of this week while waiting for important US Inflation data PCE PRICE index which will critically determine the global monetary policy map.

Company News

• PTBA: Claims to Set the Highest Sales Record in History
• DKFT: Central Omega Recorded Nickel Ore Production & Sales Surge in 2024
• GOTO: Speak Up on Merger News with Grab

Domestic & Global News
Minister Ara Mentions Pandu Sjahrir as ‘Boss’ of Danantara, a Sign of Becoming Managing Agency?
Donald Trump to Increase Economic Pressure on Iran

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