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Soft Start Seen For Indonesia Stock Market

The Indonesia stock market has finished higher in two of three trading days since the end of the five-day losing streak in which it had surrendered more than 190 points or 3.2 percent. The Jakarta Composite Index now rests just beneath the 6,040-point plateau although it may open under pressure on Wednesday.

The global forecast for the Asian markets is broadly negative on diminishing hopes for a resolution to the trade dispute between the United States and China. The European and U.S. bourses were sharply lower and the Asian markets are expected to open in similar fashion.

The JCI finished modestly higher on Tuesday following gains from the financials and mixed performances from the cement and resource stocks.

For the day, the index advanced 39.02 points or 0.65 percent to finish at 6,039.60 after trading between 6,009.38 and 6,046.46.

Among the actives, Bank Danamon Indonesia collected 0.66 percent, while Bank Mandiri spiked 2.36 percent, Bank Central Asia added 0.49 percent, Bank Negara Indonesia accelerated 2.25 percent, Bank Rakyat Indonesia gained 0.77 percent, Indosat shed 0.37 percent, Indocement tumbled 2.96 percent, Semen Indonesia climbed 1.33 percent, Indofood Suskes advanced 0.97 percent, United Tractors sank 0.86 percent, Unilever jumped 1.65 percent, Bumi Resources soared 2.53 percent, Aneka Tambang plunged 2.62 percent, Vale Indonesia retreated 1.38 percent and Timah dropped 1.11 percent.

The lead from Wall Street is weak as stocks opened lower on Tuesday, rebounded slightly but then headed firmly into the red at the close.

The Dow shed 313.98 points or 1.19 percent to 26,164.04, while the NASDAQ sank 132.52 points or 1.67 percent to 7,823.78 and the S&P fell 45.73 points or 1.56 percent to 2,893.06.

Selling pressure re-emerged late in the session after the Trump administration imposed visa restrictions on Chinese officials over abuses of Muslim minorities in the Xinjiang region. The new visa restrictions come just two days before the U.S. and China are scheduled to resume high-level trade talks in Washington.

Traders largely shrugged off a Labor Department report showing an unexpected decrease in U.S. producer prices in September - which may clear the way for the Federal Reserve to continue cutting interest rates amid signs of slowing economic growth.

Crude oil futures ended lower on Tuesday as fading optimism about U.S.-China trade talks weighed on prospects for near term energy demand. West Texas Intermediate Crude oil futures for November ended down $0.12 or 0.2 percent at $52.63 a barrel.

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