The Indonesia stock market on Tuesday snapped the two-day winning streak in which it had risen more than a dozen points or 0.3 percent. The Jakarta Composite Index finished just above the 4,085-point plateau, and now analysts are predicting renewed support at the opening of trade on Wednesday.
The global forecast for the Asian markets remains upbeat on optimism that the European Central Bank may provide further stimulus after disappointing economic data. In particular, the Italian economy remained stuck in recession in Q2 as austerity measures weighed heavily on economic activity. Also generating interest, Boston Federal Reserve President Eric Rosengren called for an "open-ended" quantitative easing program to boost economic growth. The European markets were mostly higher and the U.S. bourses were firm, and the Asian markets are tipped to open higher.
The JCI finished modestly lower as gains from the resource stocks were offset by weakness from the financial shares and cement stocks.
For the day, the index lost 19.92 points or 0.49 percent to finish at 4,085.58 after trading between 4,078.09 and 4,119.58 on volume of 3.652 billion shares.
Among the actives, Bank Negara Indonesia plunged 3.18 percent, while Bank Danamon Indonesia fell 0.83 percent, Semen Gresik eased 0.39 percent, Bumi Resources spiked 3.77 percent and Bakrie Sumatra Plantations added 0.60 percent.
The lead from Wall Street continues to be positive as stocks moved mostly higher on Tuesday, extending the upward move in the two previous sessions. The continued strength was partly due to optimism that the European Central Bank will unveil additional measures to address the ongoing debt crisis following the release of disappointing economic data from the region.
Data from Europe showed that the Italian economy shrank in the second quarter, marking the fourth consecutive quarter of contraction. A separate report showed a steeper than expected drop in German factory orders in June.
Buying interest was also generated by comments by Boston Federal Reserve President Eric Rosengren, who called for an "open-ended" quantitative easing program to boost economic growth.
"What I would argue for, actually, is to have it open ended. That we focus on economic outcomes," Rosengren said. "I would argue that if we do a quantitative easing program, again, we should be using economic outcomes as what we're trying to get."
Traders shrugged off a report from the Federal Reserve showing that consumer credit rose by $6.5 billion in June following a downwardly revised increase of $16.7 billion in May. Economists had expected an increase of $10.3 billion versus the $17.1 billion increase originally reported for May.
Among individual stocks, shares of Tenet Healthcare moved sharply higher after the hospital operator reported stronger than expected second quarter earnings. Video game maker THQ Inc. also turned a strong performance after reporting a first quarter profit compared to a year-ago loss.
Meanwhile, Pfizer and Johnson & Johnson moved to the downside after halting studies of an experimental drug for Alzheimer's disease after it failed in a second clinical trial.
The major averages pulled back off their best levels of the day but remained firmly positive on Tuesday. The Dow rose 51.09 points or 0.4 percent to finish at 13,168.60, while the NASDAQ jumped 25.95 points or 0.9 percent to end at 3,015.86 and the S&P 500 advanced 7.12 points or 0.5 percent at 1,401.35. The gains lifted the major averages to new three-month closing highs, with the NASDAQ and the S&P 500 climbing back above the key psychological levels of 3,000 and 1,400, respectively.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.