The Effect of Asia Regional Stock Price Index on the Indonesia Composite Index (ICI) on the Indonesia Stock Exchange

Abstract

Financial liberalization that occurs in various countries in the world will cause the capital market in a country to be integrated. Changes in the index of Asian countries that have economic relations with Indonesia can have an impact on the composite stock price index in Indonesia because the stock market is integrated. The purpose of this study was to determine the effect of the Hang Seng Index, Nikkei 225 Index, KS11 Index, Kuala Lumpur Composite Index, Strait Times Index on the Jakarta Stock Exchange in the 2015-2019 period. This study uses monthly data in the 2015-2019 period for each variable. The analytical method used in this research is multiple regression analysis, classical assumption test and hypothesis test using SPSS 25.0 program. The results show that partially the HSI index variable has a positive but not significant effect on the JKSE index variable, the N225 index variable has a positive but not significant effect on the JKSE index variable, the KS11 index variable has a negative but not significant effect on the JKSE index variable, the KLSE index variable has a positive effect. significant to the JKSE index variable, the STI index variable has a positive but not significant effect on the JKSE index variable, and simultaneously the HSI, N225, KS11, KLSE, STI index variables have a positive and significant effect on the JKSE index.