Wall Street, which was up on Monday (16/12) supported by various economic data, managed to support Asian stock indices on Tuesday (17/12), including Indonesia’s benchmark stock index (IHSG). Investors were back and ready to trade on the Indonesia Stock Exchange. As usual, the big cap stocks were highly popular. The rupiah’s Bank Indonesia mid-rate, which improved slightly, also contributed to the good performance of the IHSG today. The index rose 1.37 percent to 4,182.35 points.
The positive economic data which managed to lift Wall Street as well as Asian indices involves US non-farm productivity, which increased 3.0 percent - more than initially expected - in the third quarter, and US industrial output, which surpassed its pre-recession peak for the first time in November. The Empire State manufacturing index, however, despite rising from -2.21 in November to 0.98 in December 2013 (a level above 0.0 indicates improving conditions) was below market expectations.
Most Asian stock indices were up as positive US economic data is expected to lead to increased US demand for Asian exports. China was the big exception, however, due to falling property and consumer stocks. Market participants also reacted negatively to China’s Central Economic Work Conference in Beijing, in which the government did not manage to announce an economic growth target for next year.