FX.co ★ Indonesia Stocks Trade at Near One-Month Peak

Indonesia’s IDX Composite advanced 55 points, or 0.9%, to 6,312 in early Wednesday trade, reaching a near one-month high and extending gains for a third consecutive session as traders returned from the holiday. Sentiment was supported by stronger U.S. stock futures after a mixed close on Wall Street ahead of the Federal Reserve’s policy decision later today under its new chair, Kevin Warsh. The Fed is widely expected to keep interest rates unchanged, with Warsh anticipated to potentially scrap the “dot plot” to give policymakers greater flexibility.

A firmer rupiah also underpinned the market, helped by optimism over possible progress toward peace in the Middle East, which improved risk appetite and weighed on the U.S. dollar index. However, gains were limited after Fitch Ratings cautioned that Indonesian commodity exporters face elevated credit risks under the country’s centralized export policy.

All sectors advanced, led by basic materials, non-cyclical stocks, infrastructure, and energy. Among notable movers were Aneka Tambang (up 2.9%), Bank Central Asia (2.8%), Astra Agro Lestari (2.5%), and United Tractors (1%).