Asian-Pacific stock markets surged at the opening of trading on Monday, December 22, 2025, as investors awaited China's interest rate decision. In Indonesia, the IHSG opened up 0.23 percent at 8,629, though it is predicted to potentially correct amid the rupiah's weakening. The World Bank's warning on Indonesia's fiscal deficit also influenced market sentiment.
On Monday, December 22, 2025, Asian-Pacific stock markets showed a bright performance at the start of trading. Japan's Nikkei 225 surged 1.58 percent, while the Topix rose 0.86 percent, driven by the Bank of Japan's 25 basis point interest rate hike to 0.75 percent on the previous Friday—the highest level in three decades.
In South Korea, the Kospi strengthened 1.83 percent and the Kosdaq 0.99 percent. Australia's S&P/ASX 200 climbed 0.54 percent, while Hong Kong's Hang Seng reached 25,843 from 25,690.53. This surge occurred ahead of the Standing Committee of China's National People's Congress meeting from December 22-27, where investors monitored potential adjustments to the one-year and five-year benchmark rates.
In global markets, Wall Street closed higher for the second straight day on Friday, December 19. The Nasdaq Composite gained 1.31 percent to 23,307.62, boosted by Oracle shares jumping 6.6 percent after the agreement to sell TikTok's U.S. operations to a joint venture with Silver Lake. The S&P 500 added 0.88 percent to 6,834.50, and the Dow Jones Industrial Average rose 0.38 percent or 183.04 points to 48,134.89. Nvidia shares also advanced amid the Trump administration's review of AI chip sales to China.
In Indonesia, the IHSG opened up 19 points or 0.23 percent at 8,629. However, Phintraco Sekuritas' research team predicts further correction. "It is estimated that the IHSG has the potential to continue correcting," they stated in their daily research. The recent weakening of the rupiah looms large, with support levels at 8,500-8,550 and resistance at 8,700. The release of U.S. November M2 Money Supply data and low trading volume ahead of Christmas also play a role.
The rupiah exchange rate was traded at Rp16,746 per U.S. dollar at 09:02 WIB, strengthening 4 points or 0.02 percent from Rp16,750. However, BI's Jisdor recorded Rp16,735 on Friday, down 13 points from Rp16,722. Economist observer Ibrahim Assuaibi highlighted the World Bank's warning on Indonesia's fiscal health: the state budget deficit is projected at 2.8 percent of GDP for 2025-2026, widening to 2.9 percent in 2027—nearing the 3 percent limit. The state revenue ratio drops to 11.6 percent of GDP in 2025 from 13.5 percent in 2022, while the debt ratio rises to 41.5 percent in 2027 from 39.8 percent in 2024.
