Jakarta, Indonesia – Indonesia’s first-quarter gross domestic product experienced a notable growth spurt, expanding at a rate of 5.11% year on year. This marks the fastest expansion the country has seen in three quarters. Economists had anticipated a more moderate growth of 5%, making this increase a positive surprise for the market. However, on a quarter-on-quarter basis, Indonesia’s largest economy reported a slight decline of 0.83%, falling slightly below expectations. This data suggests a mixed performance for the country’s economy in the first quarter of the year.
Moving to Taiwan, iPhone manufacturer Foxconn saw a significant spike in its shares, surging by almost 7% after reporting a substantial 19.03% increase in revenue for the month of April. The company recorded 510.9 billion New Taiwan dollars in revenue, showing a strong performance in its component business, cloud and networking products, as well as significant growth in its smart consumer electronics and computing products segment.
Back in Japan, the yen is facing uphill resistance against the U.S. dollar, with SMBC economist Ryota Abe pointing out that the currency is likely to encounter obstacles at the 150 level. This comes after suspected interventions by Japanese authorities to strengthen the yen, following abrupt spikes in the currency’s value. Despite this, Abe highlighted that Japan is unlikely to intervene further unless the yen weakens significantly, emphasizing the importance of maintaining stable monetary policies between the U.S. and Japan.
Meanwhile, in China, the Caixin/S&P Global services purchasing managers’ index for April came in at 52.5, slightly lower than the previous month. The survey indicated a consistent but slightly softened growth trend in China’s services activity. This marks the 16th consecutive month of sustained growth in the sector. A reading above 50 reflects expansion, while anything below suggests a contraction, indicating a relatively stable but slightly slower growth rate for China’s services sector.
In Hong Kong, the private sector experienced a slower pace of expansion in April, with the purchasing managers’ index slipping to 50.6 from the previous month’s 50.9. While the data signals continued improvement in business conditions, concerns arise over shaky growth prospects. Forward-looking indicators, such as a decline in new business orders, hint at potential softening in the coming months, raising questions about the sustainability of the growth trend in the city’s private sector.
Amidst these global economic updates, investors are closely watching tech stocks like Samsung and SK Hynix for their performance in the AI boom. The AI supply chain, which extends across the Asia-Pacific region, is crucial for companies specializing in AI graphics processing units and printed circuit boards. Memory chips have garnered particular attention as AI technologies advance, with Samsung and SK Hynix emerging as key players in the memory chip market.
Overall, these economic developments highlight the diverse and interconnected nature of global markets, with each region facing unique challenges and opportunities in navigating the ever-evolving economic landscape.
