Update COVID-19 in Indonesia: 24,538 confirmed infections, 1,496 deaths (28 May 2020)
29 May 2020 (closed)
USD/IDR (14,769) +8.00 +0.05%
EUR/IDR (16,275) +95.18 +0.59%
Jakarta Composite Index (4,753.61) +37.43 +0.79%
Indonesian stocks are expected to rise on Wednesday (04/01) amid positive sentiments stemming from around the globe although the strong US dollar, which remains near 14-year highs, puts some pressure on commodity prices (most notably on crude oil). On Tuesday (03/01), Indonesia's benchmark Jakarta Composite Index declined 0.39 percent to 5,275.97 points as investors engaged in profit taking after the significant rally that occurred during the last couple of days before the end of 2016.
Stock trading in Indonesia will start at 09:00 am local Jakarta time. Several other markets in Asia have already opened. Japan's Nikkei 225 was up 1.49 percent at 08:15 am local Jakarta time, supported by the strong US dollar (which makes Japan's export-oriented shares attractive).
Positive sentiments stem from upbeat factory surveys from China, the European Union (EU), and the United States. Global manufacturing confidence is currently around its highest level since December 2013. While US factory activity accelerated to a two-year high amid a surge in new orders, manufacturing in the EU grew at its fastest pace in five years. Meanwhile, China’s manufacturing activity expanded at its quickest pace in nearly four years.
Overnight, US stocks started the new year in green territory, with the blue-chip index climbing by double-digit percentages to post its biggest gain since 2013. However, the Dow Jones Industrial Average, again, failed to touch the 20,000 level. Many analysts and investors expect the upward movement of US stocks to continue due to expectation of a rebound in corporate earnings, accelerated US economic growth, and prospects of tax cuts and fiscal stimulus under the new Donald Trump administration that will be inaugurated in January 2017.