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Indonesia Stocks Expected To Open In The Green

The Indonesia stock market has finished lower in consecutive trading days, giving away almost 140 points or 2.3 percent in that span. The Jakarta Composite Index now rests just above the 6,070-point plateau although it's predicted to rebound on Wednesday.

The global forecast for the Asian markets is positive on bargain hunting, rising crude oil prices and optimism that the United States and China will reach a trade agreement. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The JCI finished sharply lower on Tuesday following losses from the financial shares and resource stocks, although the cement companies offered mild support.

For the day, the index dropped 64.19 points or 1.05 percent to finish at 6,071.20 after trading between 6,033.62 and 6,101.09.

Among the actives, Bank Danamon Indonesia skidded 1.49 percent, while Bank Mandiri dropped 1.00 percent, Bank Central Asia tumbled 2.05 percent, Bank Negara Indonesia shed 0.59 percent, Bank Rakyat Indonesia retreated 1.22 percent, Indosat plunged 2.54 percent, Indocement jumped 2.49 percent, Semen Indonesia climbed 1.91 percent, Unilever retreated 1.72 percent, Indofood fell 0.39 percent, Bumi Resources gained 0.80 percent, Aneka Tambang plunged 2.74 percent, Vale Indonesia declined 2.18 percent, Timah tumbled 2.63 percent and United Tractors was unchanged.

The lead from Wall Street is firm as stocks opened higher on Tuesday and remained in the green throughout the session, offsetting the losses from the previous day.

The Dow added 207.06 points or 0.82 percent to end at 25,532.05, while the NASDAQ jumped 87.47 points or 1.14 percent to 7,734.49 and the S&P 500 rose 22.54 points or 0.80 percent to 2,834.41.

Bargain hunting has contributed to the rebound on Wall Street, with traders picking up stocks at reduced levels following Monday's sell-off.

The markets are also benefiting from optimism the U.S. and China will eventually reach a trade deal despite the retaliatory tariffs announced by China.

President Donald Trump has continued to express confidence the Chinese will yield to U.S. demands, repeatedly arguing that the U.S. is in a stronger position than China in the negotiations.

Crude oil prices moved higher on Tuesday amid supply concerns and slightly easing worries about energy demand after the U.S. and China struck a conciliatory tone on trade talks. West Texas Intermediate Crude oil futures for June ended up $0.74 or 1.2 percent at $61.78 a barrel.

Closer to home, Indonesia will release April data for imports, exports and trade balance later today. In March, imports were worth $13.49 billion and exports were at $14.04 billion for a trade surplus of $0.54 billion.

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