The announcement that the Federal Reserve (FED) will start its quantitative easing tapering in January 2014, while keeping interest rates low, made stock indices in Asia rise, including Indonesia's benchmark stock index (IHSG), although mining and property stocks were able to limit today's gain. The IHSG rose 0.85 percent to 4,231.98 points on Thursday (19/12). The Indonesia rupiah exchange rate (IDR), however, was down as future tighter US dollar supplies causes market participants to buy US dollar now.
After Asian stock indices opened strong, they became mixed on Thursday (19/12). China's benchmark index went into the red zone after market participants responded negatively to the government's plan to raise lending rates as this is expected to result in slowing economic growth. Most other Asian stock indices were up after results of the Federal Reserve's FOMC meeting.
| Source: Bank Indonesia