THE INFLUENCE OF MAJOR ASIAN STOCK INDICES TOWARDS JAKARTA COMPOSITE INDEX AFTER THE GLOBAL CRISIS ERA (2009-2014)

Abstract

This research focused on Indonesian and four Major Asian Indices. The purpose of this research to analyze the effect of China’s Shanghai Composite Index, Hong Kong’s Hang Seng Index, Japan’s Nikkei 225 Index, and South Korea’s KOSPI Index to Jakarta Composite Index. In this study, analyze the data obtained in the form of quantitative analysis. Quantitative analysis included the classical assumption test and multiple regression analysis to test the hypothesis through T-test, F-test and coefficient of determination (R²). Data analysis techniques used were linear regression analysis that serves to prove the research hypothesis. Results of the analysis found that from the four indices, partially only Japan’s Nikkei 225 Index, and South Korea’s KOSPI Index have a positive and significant influence on Jakarta Composite Index. Hypothesis testing using T-test showed that three independent variables (China’s Shanghai Composite Index, Japan’s Nikkei 225 Index, and South Korea’s KOSPI Index) significantly affect Jakarta Composite Index as dependent variables. Then through the F test showed that the variable China’s Shanghai Composite Index, Hong Kong’s Hang Seng Index, Japan’s Nikkei 225 Index, and South Korea’s KOSPI Index together has a significant effect to the Jakarta Composite Index. Figures adjusted R square of 0.918 indicates that 91.8 percent of the variations of Jakarta Composite Index can be explained by four independent variables used in the regression equation while the rest of 8.2 percent is explained by another variable outside the four variables used within this research.