Author(s): Petrus Peleng Roreng, Jeferson Belopadang
In this paper, the researcher study and analyze the effect of the Asian regional stock price index on the composite stock price index in the Indonesian stock exchange empirically. The independent variables used in this study are Singapore Straits Times Price Index (STI), Kuala Lumpur Composite Index (KLCI), Shanghai Stock Exchange (SSE), Nikkei 225 Index (N225), Hang Seng Index (HSI), dan Korea Composite Stock Price Index (KOSPI). In contrast, the dependent variable used is the Composite Stock Price Index in the Indonesia Stock Exchange. The results found that KLCI had a significant and positive effect on the IHSG. In contrast, STI, SSE, HSI, and KOSPI had a positive but not significant impact on the IHSG and N225 had a negative and insignificant effect on the IHSG. In addition, the R Square value is 28.6%. That means that other variables outside the model explained 71.4%.