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Higher Open Called For Indonesia Stock Market

The Indonesia stock market on Tuesday halted the three-day winning streak in which it had advanced almost 110 points or 1.7 percent. The Jakarta Composite Index now rests just above the 6,260-point plateau although it may reverse those losses on Wednesday.

The global forecast for the Asian markets is positive on trade optimism and surging crude oil prices. The European and U.S. markets were up and the Asian bourses figure to open in similar fashion.

The JCI finished modestly lower on Tuesday following losses from the food and cement shares, while the financial and resource stocks were mixed.

For the day, the index dropped 24.38 points or 0.39 percent to finish at 6,262.85 after trading between 6,251.38 and 6,316.24.

Among the actives, Bank Danamon Indonesia jumped 1.85 percent, while Bank Central Asia eased 0.10 percent, Bank Mandiri was down 1.01 percent, Bank Negara Indonesia collected 0.28 percent, Bank Rakyat Indonesia added 0.55 percent, Indosat spiked 2.27 percent, Bumi Resources added 0.73 percent, Aneka Tambang declined 1.30 percent, Vale Indonesia fell 0.31 percent, Indocement tumbled 3.47 percent, Semen Indonesia shed 0.88 percent, United Tractors skidded 1.70 percent, Indofood Suskes dropped 1.68 percent, Holcim Indonesia lost 1.30 percent and Unilever Indonesia retreated 2.57 percent.

The lead from Wall Street is upbeat as stocks opened higher on Tuesday; they gave back some of those gains as the day progressed but still ended firmly in the green.

The Dow added 256.10 points or 1.09 percent to 23,787.45, while the NASDAQ gained 73.53 points or 1.08 percent to 6,897.00 and the S&P rose 24.72 points or 0.97 percent to 2,574.41.

Optimism about trade talks between the U.S. and China contributed to the early rally on Wall Street amid a second day of meetings between U.S. and Chinese officials.

A quiet day on the U.S. economic front also kept some traders on the sidelines amid the ongoing government shutdown.

Crude oil prices moved up sharply on Tuesday, extending gains to a seventh successive session on optimism about U.S.-China trade discussions and reports of output cuts by oil producers. Crude oil futures for February were up $1.26 or 2.6 percent at $49.78 a barrel.

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