Most Asian indices were up on Wednesday and, as such, they provided good support for the IHSG's upward movement. Previously, Asian markets were down on concerns about a credit crisis in China. However, after China's central bank indicated that it was prepared to act, investors regained confidence.

On Wednesday's trading day (26/06), Indonesia's main stock index (IHSG) climbed 3.82 percent to the level of 4,587.73 points. Foreign investors, however, still sold more Indonesian stocks than they bought.

The IDR rupiah rebounded slightly after the Chinese Yuan strengthened as China's central bank intends to tackle the liquidity crisis in its banking sector. The central bank, being the lender of last resort, provided extra liquidity in order to stabilize the market.

| Source: Bank Indonesia

Besides more liquidity being made available by China's central bank, most Asian indices were also up because they responded to yesterday's released macroeconomic data from the United States. These data included positive developments in US house prices, US consumer confidence and US durable goods orders.

Bahas