(RTTNews) – The Indonesia stock market has tracked higher in three straight sessions, gathering almost 140 points or 2.2 percent along the way. The Jakarta Composite Index now rests just shy of the 6,540-point plateau and it’s tipped to open in the green again on Wednesday.
The global forecast for the Asian markets is positive on optimism that the U.S. and China may scale back their tariff talk. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.
The JCI finished sharply higher on Tuesday following gains from the financial shares, cement companies and resource stocks.
For the day, the index rallied 92.30 points or 1.43 percent to finish at 6,538.27 after trading between 6,428.10 and 6,538.32.
Among the actives, Bank CIMB Niaga rose 0.27 percent, while Bank Mandiri rallied 2.39 percent, Bank Danamon Indonesia collected 0.43 percent, Bank Negara Indonesia added 0.50 percent, Bank Central Asia spiked 2.41 percent, Bank Rakyat Indonesia perked 0.28 percent, Indosat Ooredoo Hutchison accelerated 2.68 percent, Indocement soared 2.90 percent, Semen Indonesia skyrocketed 7.17 percent, Indofood Sukses Makmur stumbled 2.04 percent, United Tractors gained 0.55 percent, Astra International skidded 1.04 percent, Energi Mega Persada jumped 2.76 percent, Astra Agro Lestari advanced 0.89 percent, Aneka Tambang surged 4.78 percent, Vale Indonesia exploded 7.11 percent, Timah strengthened 3.88 percent and Bumi Resources skyrocketed 12.00 percent.
The lead from Wall Street is upbeat as the major averages opened higher and improved as the day progressed, ending near session highs.
The Dow surged 1,016.57 points or 2.66 percent to finish at 39,186.98, while the NASDAQ rallied 429.52 points or 2.71 percent to close at 16,300.42 and the S&P 500 jumped 129.56 points or 2.51 percent to end at 5,287.76.
The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the steep drop on Monday, amid lingering trade war concerns and President Donald Trump’s continued attacks on Federal Reserve Chair Jerome Powell.
Further buying interest was generated in reaction to reports indicating Treasury Secretary Scott Bessent told a closed-door investor summit he expects the trade dispute between the U.S. and China to de-escalate.
The markets also benefitted from positive earnings news from the likes of 3M (MMM) and aircraft engine supplier GE Aerospace (GE), which both beat the street.
Crude oil moved sharply higher on Tuesday after the Treasury Department announced new sanctions against Iran. West Texas Intermediate crude for May delivery surged $1.23 or 2.0 percent to $64.31 a barrel.
Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting later today and then announce its decision on interest rates. The benchmark lending rate (5.75 percent), deposit facility rate (5.00 percent) and lending facility rate (6.50 percent) are all seen to be unchanged.
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