The US markets closed higher on Monday (Jan 5): Dow +1.23%, S&P 500 +0.64%, and Nasdaq +0.69%. Wall Street’s key indexes closed higher even after the US attack on Venezuela and capture of leader Nicolas Maduro as crude oil prices saw gains and investors bet the action would not lead to bigger geopolitical conflicts that upset markets. The 10-year U.S. Treasury yield went down -0.64% (-0.027 bps) to 4.164%, while the USD Index declined -0.10% to 98.3.

Commodity markets closed mostly higher on Monday (Jan 5): WTI crude +1.83% to USD 58.37/bbl, Brent crude +1.78% to USD 61.84/bbl, coal -0.33% to USD 106.20/ton, CPO +0.55% to MYR 4,012/ton, and gold +2.68% to USD 4,332/oz.

Asian markets closed higher on Monday (Jan 5): Kospi +3.43%, Hang Seng +0.03%, Nikkei +2.97%, and Shanghai +1.38%. The JCI edged up +1.27% to 8,859.2 with foreign overall net buy of IDR 39.9 billion; IDR -8.9 billion in the regular market, and IDR 48.8 billion in the negotiated market. The largest foreign inflow in the regular market was recorded by ANTM (IDR 154.1 billion), followed by BBCA (IDR 124.4 billion), and BRMS (IDR 110.6 billion). The largest foreign outflow in the regular market was recorded by DEWA (IDR 415.1 billion), followed by BUMI (IDR 271.5 billion), and BULL (IDR 83.4 billion). Top leading movers are BYAN, BRMS, TLKM, while top lagging movers are DSSA, CUAN, GOTO.

This morning, the KOSPI is trading lower at -1.03%, while the Nikkei opened high +1.02%. We anticipate the JCI will move sideways today, supported by mixed global and regional market sentiment.