(RTTNews) – The Indonesia stock market bounced higher again on Tuesday, one day after halting the two-day winning streak in which it had gained almost 70 points or 1.2 percent. The Jakarta Composite Index now rests just beneath the 6,130-point plateau although it’s expected to turn lower again on Wednesday.
The global forecast for the Asian markets is soft due to the outlook for interest rates, despite encouraging data. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.
The JCI finished modestly higher on Tuesday following mixed performances from the financials, cement companies and resource stocks.
For the day, the index added 40.94 points or 0.67 percent to finish at 6,129.10 after trading between 6,099.16 and 6,130.86.
Among the actives, Bank Danamon Indonesia skidded 1.21 percent, while Bank CIMB Niaga collected 0.50 percent, Bank Central Asia eased 0.15 percent, Bank Mandiri dropped 0.81 percent, Indosat spiked 3.72 percent, Indocement climbed 1.41 percent, Indofood Suskes sank 0.80 percent, United Tractors rallied 2.51 percent, Astra International jumped 1.38 percent, Astra Agro Lestari rose 0.30 percent, Aneka Tambang tumbled 1.98 percent, Vale Indonesia and Timah both retreated 0.99 percent, Energi Mega Persada plunged 3.28 percent and Bumi Resources, Semen Indonesia, Bank Negara Indonesia and Bank Rakyat Indonesia were unchanged.
The lead from Wall Street is negative as the major averages opened higher on Tuesday but quickly turned lower and finished in the red.
The Dow tumbled 292.06 points or 0.84 percent to finish at 34,577.57, while the NASDAQ sank 67.82 points or 0.45 percent to close at 15,037.76 and the S&P 500 fell 25.68 points or 0.57 percent to end at 4,443.05.
Stocks initially benefited from a positive reaction to a highly anticipated Labor Department report showing consumer prices increased less than expected in August. The relatively tame inflation data generated optimism that the Federal Reserve may delay plans to begin scaling back stimulus.
However, subsequent comments from economists suggested that the Fed is still likely to begin tapering its asset purchases as soon as December.
The Fed is scheduled to hold a monetary policy meeting next week, with many expecting the central bank to provide an update on the outlook for its asset purchase program.
Crude oil futures settled slightly higher Tuesday after the Labor Department said U.S. consumer prices increased less than expected last month, while traders also weighed the impact of tropical storm Nicholas. Crude oil futures settled at $70.46 a barrel, up a penny from the previous close.
Closer to home, Indonesia will see August numbers for imports, exports and trade balance later today. Imports are expected to jump 45.05 percent on year, up from 44.44 percent in July. Exports are called higher by an annual 37.15 percent, up from 29.32 percent in the previous month. The trade surplus is pegged at $2.4 billion, down from 2.59 billion a month earlier.