FX.co ★ Indonesian Stocks Extend Strength as Week Begins

Indonesian shares advanced 32 points, or 0.5%, to 6,070 in Monday’s morning session, extending gains from the previous trading day as softer U.S. jobs data boosted futures and eased pressure on the Federal Reserve to continue aggressive tightening. Bargain hunters remained active after the local market recently touched its lowest level since mid-July.

Nonetheless, sentiment stayed cautious ahead of key domestic data releases this week, including September foreign exchange reserves, consumer confidence figures, and August retail sales. At the same time, worries over Indonesia’s external vulnerabilities persisted despite August’s trade surplus, with inflation risks mounting after September CPI quickened to 3.28%, moving closer to Bank Indonesia’s upper target band of 3.5%.

In China, a major trading partner, markets remained closed for the Golden Week holiday, limiting regional trading cues. Gains on the Indonesian bourse were broad-based, spanning industrials, transportation, cyclicals, and basic materials. Early notable movers included Rukun Raharja, up 7.8%; Kawasan Industri Jababeka, up 3.3%; Summarecon Agung, up 2.6%; and Jasa Marga, up 2.0%.