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Additional Support Called For Indonesia Stock Market

The Indonesia stock market rebounded on Monday, one session after it had halted the three-day winning streak in which it had advanced almost 65 points or 1.1 percent. The Jakarta Composite Index now rests just beneath the 6,420-point plateau and it may add to its winnings on Tuesday.

The global forecast for the Asian markets is positive on the anticipation of solid earnings news. The European and U.S. markets were up and the Asian bourses are also tipped to open in the green.

The JCI finished modestly higher on Monday following gains from the financial shares, cement stocks and resource companies.

For the day, the index jumped 44.89 points or 0.70 percent to finish at 6,418.23 after trading between 6,405.45 and 6,439.19.

Among the actives, Bank Mandiri advanced 0.93 percent, while Bank Central Asia jumped 1.58 percent, Bank Negara Indonesia shed 0.27 percent, Bank Rakyat Indonesia rose 0.44 percent, Astra International fell 0.34 percent, Indocement added 0.81 percent, Semen Indonesia perked 0.81 percent, United Tractors rose 0.63 percent, Unilever Indonesia lost 0.73 percent, Bumi Resources sank 0.85 percent, Aneka Tambang surged 4.14 percent, Timah spiked 1.49 percent and Vale Indonesia, Indofood Suskes and Bank Danamon Indonesia were unchanged.

The lead from Wall Street is cautiously optimistic as stocks showed a lack of direction on Monday before the major averages finally inched higher to fresh record closing highs.

The Dow added 27.13 points or 0.10 percent to 27,359.16, while the NASDAQ rose 14.04 points or 0.17 percent to 8,258.19 and the S&P 500 gained 0.53 points or 0.02 percent to 3,014.30.

The markets saw a positive reaction to earnings news from Citigroup (C), with the financial giant reporting second quarter results that beat analyst estimates on both the top and bottom lines.

Goldman Sachs (GS), Johnson & Johnson (JNJ), JPMorgan (JPM), Kraft Heinz (KHC), IBM (IBM), Microsoft (MSFT), and America Express (AXP) are also due to report their results this week.

In economic news, the Federal Reserve Bank of New York said that regional manufacturing activity rebounded modestly in July.

Crude oil futures edged lower Monday on concerns about energy demand growth. West Texas Intermediate crude oil futures for August ended down $0.63 or 1.1 percent at $59.58 a barrel.

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