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Indonesia Bourse May Spin Its Wheels On Tuesday

The Indonesia stock market has tracked higher in back-to-back trading days, collecting more than 55 points or 0.8 percent along the way. The Jakarta Composite Index now rests just above the 6,255-point plateau although the rally is likely to stall on Tuesday.

The global forecast for the Asian markets is flat to lower, with anticipated weakness from tech shares likely offset by support from crude oil prices. The European markets were slightly lower and the U.S. bourses were mixed and the Asian markets figure to split the difference.

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

For the day, the index gained 23.38 points or 0.38 percent to finish at the daily low of 6,255.31 after peaking at 6,312.87.

Among the actives, Bank Danamon Indonesia skidded 1.25 percent, while Bank CIMB Niaga shed 0.51 percent, Bank Negara Indonesia sank 1.25 percent, Bank Central Asia slid 0.51 percent, Indosat soared 5.26 percent, Telkom Indonesia declined 1.25 percent, Indocement tumbled 2.19 percent, Semen Indonesia retreated 2.09 percent, Indofood Suskes fell 0.41 percent, United Tractors added 0.76 percent, Astra International skidded 1.30 percent, Astra Agro Lestari advanced 0.92 percent, Aneka Tambang spiked 2.43 percent, Vale Indonesia jumped 1.58 percent, Timah rallied 2.16 percent, Bumi Resources surged 5.17 percent and Bank Mandiri and Bank Rakyat Indonesia were unchanged.

The lead from Wall Street is mostly weak as stocks opened in the red on Monday and largely stayed that way, although the Dow managed to break into positive territory.

The Dow rose 27.37 points or 0.09 percent to finish at 31,521.69, while the NASDAQ plummeted 341.42 points or 2.46 percent to end at 13,533.05 and the S&P 500 lost 30.21 points or 0.77 percent to close at 3,876.50.

The steep drop by the NASDAQ came as traders moved out of technology stocks amid concerns about the impact of the recent increase in treasury yields. Electric car maker Tesla (TSLA), Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) all took heavy damage.

The sell-off came as the yield on the benchmark ten-year note saw further upside, reaching its highest closing level in a year. Bond yields remain at historically low levels, but the recent increase may still spook investors already concerned that stocks are overbought.

In U.S. economic news, the Conference Board reported a bigger than expected increase by its index of leading U.S. economic indicators in January.

Crude oil prices rose sharply on Monday amid supply concerns due to a slowdown in production after last week's severe cold snap. West Texas Intermediate Crude oil futures contracts for March expired at $61.49 a barrel, gaining $2.25 or 3.8 percent for the session.

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