The IHSG ended Tuesday (28/05) on 5,176.23 points, an 1.79 percent rise.

The IDR rupiah is still weakening in line with the yen which is falling against a number of currencies. Also speculation about a postponement of Indonesia's subsidized fuel price hike - fueling market uncertainties - made the rupiah fall. A postponement means that the budget balance will see a larger deficit, which can subsequently influence the country's trade balance. Moreover, the US dollar is strengthening as it is expected that the Federal Reserve's stimulus program will be stopped due to improving economic data in the US. 

| Source: Bank Indonesia

Asian stock indices were mostly up with the Nikkei rebounding as well as strong indices in China as the yen weakened after a high official of Japan stated that the government might increase the country's stimulus package. Japan's export stocks subsequently increased. Stock indices also rose because China's prime minister, Li Keqiang, said that the government, faced by major challenges, will ignite a reformation to spur economic growth.

Discuss