The Indonesian stock market on Wednesday wrote an emphatic finish to the three-day losing streak in which it had given away more than 60 points or 2 percent. The Jakarta Composite Index finished just above the 3,135-point plateau, and now analysts are forecasting a further recovery at the opening of trade on Thursday.
The global forecast for the Asian markets is broadly positive, keyed by positive economic data out of the United States and China. Oil stocks are expected to provide support, as are the steel and financial sectors. The European and U.S. markets finished sharply higher, and now the Asian bourses are expected to follow suit.
The JCI finished sharply higher on Wednesday, thanks to solid gains from the financial shares and the telecom stocks.
For the day, the index surged 53.43 points or 1.7 percent to finish at 3,135.37 after trading between 3,081.49 and 3,135.54. Volume was 5.2 billion shares worth 4.8 trillion rupiah. There were 139 gainers and 59 decliners.
Among the actives, Bank Mandiri added 1.7 percent, while Bank Tabungan Negara jumped 2.2 percent, Indofood Sukses Makmur shed 1.1 percent, Unilever Indonesia collected 0.9 percent, Telekomunikasi Indonesia surged 4.1 percent and Semen Gresik gathered 1.2 percent.
Wall Street puts forth a very optimistic lead as stocks saw substantial gains to open the traditionally slow month of September on Wednesday, with data showing a pickup in manufacturing activity in both the U.S. and China recharging some hopes of a continued economic recovery. The rally was further fueled by a better than expected reading on resource-linked Australian GDP.
On the economic front, the Institute for Supply Management reported that its index of U.S. manufacturing activity rose to 56.3 in August from 55.5 in July, surprising economists who had expected the index to dip to 52.9.
Market sentiment was already upbeat ahead of the report, as data from Markit Economics showed that Chinese manufacturing activity expanded after a two-month contraction. The headline index came in at 51.9, up from 49.4 in July.
Early optimism was also generated by a report from the Australian Bureau of Statistics showing that Australian GDP rose by 1.2 percent in the second quarter compared to the 0.7 percent growth seen in the previous quarter. Economists had expected the economy to grow by 0.9 percent.
Meanwhile, the day's second-tier economic data from the U.S. saw little reaction. The Commerce Department said that construction spending fell by 1.0 percent in July, which was steeper than expected.
Also, Automatic Data Processing, Inc. (ADP) reported that private sector employment fell by 10,000 jobs in August, while economists had forecast an increase of 13,000 jobs.
On the corporate front, General Motors Co. and Ford Motor Co. (F) both reported drops in their U.S. vehicle sales for August compared to the same month last year, when sales were boosted by the U.S. government's "Cash for Clunkers" incentive program. GM reported a 25 percent drop in U.S. vehicle sales for August, while Ford reported an 11 percent decline.
The major averages saw further upside in late-session dealing, ending near their best levels of the day. The Dow shot up by 254.75 points or 2.5 percent to 10,269.47, the NASDAQ surged by 62.81 points or 3 percent to 2,176.84 and the S&P 500 advanced by 30.96 points or 3 percent to 1,080.29.
In economic news, Indonesia's consumer price index climbed to 6.4 percent in August from 6.2 percent in the previous month, the statistical office said on Wednesday. This was less than expectations for a 6.7 percent yearly rise in prices.
Reports also said Indonesian exports increased 29 percent annually in July, higher than expectations for 28.2 percent increase. Imports, meanwhile, climbed 45 percent, also beating forecasts for 35 percent growth. A trade deficit of $130 million was in July, in sharp contrast to the $800 million surplus predicted by economists.
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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.