Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,501) +55.01 +0.38%
EUR/IDR (16,343) -41.31 -0.25%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
With the notable exception of China, Asian stock markets are showing solid gains on Wednesday (27/01) on the back of yesterday's sharp oil price rebound and rising stocks on Wall Street overnight. These factors caused Indonesia's benchmark Jakarta Composite Index to have climbed 0.70 percent to 4,541.82 points by 12:40 pm local Jakarta time on Wednesday (27/01). On Tuesday, West Texas Intermediate closed at USD $31.45 per barrel, up nearly four percent, giving rise to rising US stocks.
On Tuesday the Dow Jones industrial average climbed 1.8 percent, the Standard & Poor's 500 index picked up 1.4 percent, while the Nasdaq composite index rose 1.1 percent on the back of the oil price rebound.
Although most Asian stocks are in green territory supported by the higher oil price and rising stocks on Wall Street, the oil price fell again today to around USD $31 per barrel in Asian trade.
Meanwhile, markets are not too much focused on the first policy meeting of the Federal Reserve (26-27 January) as the US central bank is not expected to raise its key interest rate again (after the 0.25 percent rate hike in December 2015). Most market participants estimate that another US rate hike is more likely to occur in March 2016.
Markets are also still upbeat about expectation that both the European and Japanese central banks will provide more stimulus in order to boost their sluggish economies. Such a move would add liquidity to the market and boost investors' risk appetite.
The notable exception today is China's Shanghai Composite Index. The index was down 2.87 percent by 12:55 local Jakarta time, extending its plunge due to slumping profits at industrial companies.
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) appreciated 0.24 percent to IDR 13,871 per US dollar on Wednesday (27/01).
Indonesian Rupiah versus US Dollar (JISDOR):| Source: Bank Indonesia