TEMPO.CO, Jakarta - The Composite Stock Price Index (IHSG) of the Indonesia Stock Exchange (IDX) is predicted to rise on Monday as market participants continue to monitor the tariff tensions between the United States and China.

The IHSG weakened by 36.89 points or 0.59 percent at 6,225.34. Meanwhile, the LQ45 index, consisting of 45 leading stocks, declined by 5.95 points or 0.84 percent to 700.75. "The IHSG today has the potential to attempt a continued strengthening if it can hold above the 6,200 support," said the Head of Retail Research at BNI Sekuritas, Fanny Suherman, in Jakarta on Monday, April 14, 2025.

Market participants were rattled by the temporary suspension of tariffs on European goods, and China's retaliatory actions against the increase in import tariffs from the U.S. Tensions escalated after China retaliated with an effective tariff rate of 145 percent on Friday, April 11. In addition to triggering sharp volatility in the stock market, the trade war also fueled expectations of U.S. consumer inflation to the highest level since 1981.

Previously, U.S. President Donald Trump announced a change in tariff direction on Wednesday, April 9, last week, by reducing new reciprocal tariffs to 10 percent for imports from most countries for 90 days. In addition, the cumulative tariff for China will now be 145 percent, consisting of a new import duty of 125 percent for goods, on top of the existing 20 percent duty related to the fentanyl crisis.

The U.S. stock market on Wall Street surged in trading on Friday, April 11, as the first quarter of the 2025 financial reporting season commenced and investors concluded a tumultuous week dominated by a multi-front trade war driven by U.S. President Donald Trump. The surge was driven by a statement from the President of the Fed Bank of Boston, Susan Collins, who affirmed that the Fed is ready to maintain financial market stability if necessary.

The Dow Jones Industrial Average rose by 1.56 percent, the S&P 500 strengthened by 1.81 percent, and the Nasdaq Composite increased by 2.06 percent. On Friday, April 11, the Asia Pacific markets executed another selling spree due to concerns over the U.S. trade war with China, as tensions between the two largest economies sparked risk avoidance sentiment.

This morning, the regional Asian stock markets, including the Nikkei index, strengthened by 467.75 points or 1.39 percent to 34,053.33, the Shanghai index strengthened by 26.55 points or 0.82 percent to 3,264.78, the Kuala Lumpur index strengthened by 20.48 points or 1.41 percent to 1,475.24, and the Straits Times index strengthened by 56.40 points or 1.61 percent to 3,568.47.

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