JAKARTA - Several global stock market indices recorded declines as of midday on Monday (April 7) due to the tariff war between the United States and several of its trading partners. The US, China, and the European Union have been retaliating by raising import tariffs since Donald J. Trump announced the reciprocal tariff policy.

As of midday Indonesia time, the Dow Jones Industrial Average (DJI) index fell 5.50% to 38,314.86 points, the S&P 500 dropped 5.97% to 5,074.08 points, the Nasdaq Composite declined 5.82% to 15,587.79 points, and the NYSE Composite weakened 6.12% to 17,618.61 points.

Meanwhile, the Strait Times Index (STI) fell 7.3% to 3,546.54 points, the Hang Seng Index dropped 12% to 20,109.71 points, and Bursa Malaysia Bhd (KLSE) declined 4.38% to 7.42 MYR.

Quoting Reuters, the drop in Asian indices occurred because there has been no signal regarding the cancellation of the reciprocal tariff policy by the United States (US) government. This situation has the potential to drive a recession that could lead to a central bank interest rate cut in May 2025.

In the meantime, the management of PT Bursa Efek Indonesia (BEI) clarified data regarding the Jakarta Composite Index (IHSG) trade, which had dropped 11.46% to 5,730.34 points at 10:40 WIB. "We inform you that as of Monday (April 7), there were no settlement trading activities on the BEI due to a market holiday," stated BEI management.

The BEI management explained that it is currently conducting routine internal system testing to ensure smooth trading following the extended holiday. Additionally, BEI management requested investors disregard information regarding IHSG testing data findings that have circulated since the morning. (LK/LM)