Positive American and European stock indices on Tuesday (14/05/13) made a good impact on Asian stock indices on Wednesday (15/05/13), including Indonesia's main index (IHSG) which is heading towards the 5,100 points line. Although many foreign investors were eager to sell their Indonesian assets, support from other Asian stock indices kept the IHSG within the green zone. At the end of the trading day, it stood at 5,089.88 points, a 0.16 percent rise.
The IDR rupiah weakened as market participants responded negatively to the lower than expected ZEW economic sentiment of Germany, as well as its disappointing GDP growth. Apart from Germany, a number of other Eurozone countries also posted weak GDP growth figures and which resulted in a weakening of the Euro. Inflation figures in various Eurozone countries were positive, but were not able to offset negative market sentiments brought on by the lower GDP figures.| Source: Bank Indonesia
Asian stock indices were mostly up due to the positive impact of Tuesday's upward moving stock indices in America and Europe. The weakening of the Japanese Yen (compared to the US dollar) was well-received as it is considered good for Japan's export businesses. Despite Japan's household confidence being lower than expected, it was offset by South Korea's lower unemployment rate and the weaker Yen.