Weakening American and European stock indices on Tuesday (02/07), as investors mostly refrained from trading ahead of Wednesday when a number of important US economic data are released, caused negative market sentiments in Asia today (03/07). Moreover, the market responded negative towards the World Bank's July report in which the outlook for economic growth of Indonesia in 2013 was cut to 5.9 percent (from 6.2 percent). Lastly, a gap at 4,620 - 4,644 still needed to be closed.
The three above matters made Indonesia's main stock index (IHSG) tumble by 3.20 percent to 4,577.15 points. Foreign investors were again selling more Indonesian stocks than they bought.
The IDR rupiah depreciated slightly against the US dollar after market players responded to the increase in US factory orders and used a wait and see strategy before data about US employment are released.| Source: Bank Indonesia