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Indonesia Bourse Likely To Test Resistance At 6,300 Points

The Indonesia stock market has climbed higher in three straight sessions, gathering almost 110 points or 1.7 percent along the way. The Jakarta Composite Index now rests just above the 6,285-point plateau and it's called higher again on Tuesday.

The global forecast for the Asian markets is upbeat on optimism for the global trade outlook - plus a bump in crude oil prices. The European markets were down and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.

The JCI finished modestly higher on Monday as gains from the financial shares and resource stocks were capped by weakness from the cement companies.

For the day, the index picked up 12.68 points or 0.20 percent to finish at the daily low of 6,287.22 after peaking at 6,354.76.

Among the actives, Bumi Resources soared 4.58 percent, while Vale Indonesia surged 4.15 percent, Aneka Tambang spiked 1.32 percent, Indocement skidded 1.37 percent, Semen Indonesia shed 0.87 percent, United Tractors tumbled 3.53 percent, Holcim Indonesia dropped 2.28 percent, Unilever jumped 1.67 percent, Bank Danamon Indonesia accelerated 3.50 percent, Bank Central Asia collected 0.77 percent, Bank Mandiri dipped 0.34 percent, Bank Negara Indonesia advanced 1.72 percent, Indosat perked 2.32 percent and Indofood Suskes and Bank Rakyat Indonesia were unchanged.

The lead from Wall Street is positive as stocks extended Friday's gains, allowing the major averages to offset last month's selloff.

The Dow added 98.19 points or 0.42 percent to 23,531.35, while the NASDAQ gained 84.61 points or 1.26 percent to 6,823.47 and the S&P rose 17.75 points or 0.70 percent to 2,549.69.

The continued strength on Wall Street reflected optimism about high-level trade talks between the U.S. and China in Beijing; the two-day meeting was described as positive and constructive.

Meanwhile, traders largely shrugged off an Institute for Supply Management report showing growth in U.S. service sector activity slowed more than expected in December.

Crude oil futures were up Monday, extending gains to a sixth straight session on reports Saudi Arabia will reduce crude exports by the end of this month. Crude oil futures for February were up $0.56 or 1.2 percent at $48.52 a barrel.

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