FX.co ★ Indonesia Bourse May Extend Wednesday's Gains

The Indonesian stock market rebounded on Wednesday, recovering from a brief halt in its two-day winning streak that saw an almost 50-point or 0.7 percent increase. The Jakarta Composite Index (JCI) is now slightly above the 7,255 mark and may gain further support on Thursday.

Globally, the forecast for Asian markets is optimistic, driven by an improved outlook for interest rates. The European and U.S. markets posted solid gains, which are likely to positively influence Asian equities.

On Wednesday, the JCI edged up, buoyed by gains in the cement sector and a mix of performances in financial and resource stocks. The index increased by 13.90 points, or 0.19 percent, closing at 7,255.76 after fluctuating between 7,226.50 and 7,275.19 throughout the day.

Notable market movements included Bank CIMB Niaga's 0.54 percent drop, Bank Mandiri's 1.16 percent decline, and Bank Danamon Indonesia's 0.78 percent gain. Bank Negara Indonesia added 0.40 percent, Bank Central Asia rose by 0.98 percent, and Bank Maybank Indonesia surged by 3.85 percent. Among other significant changes, Indosat Ooredoo Hutchison fell by 2.63 percent, Indocement increased by 0.35 percent, Semen Indonesia climbed by 0.26 percent, and Indofood Sukses Makmur strengthened by 1.24 percent. United Tractors jumped 3.20 percent, Astra International gained 3.96 percent, and Astra Agro Lestari improved by 0.84 percent. Aneka Tambang advanced by 1.15 percent, Jasa Marga surged 4.23 percent, Vale Indonesia rallied 1.63 percent, while Timah dropped by 1.56 percent, and Bumi Resources retreated by 1.32 percent. Energi Mega Persada and Bank Rakyat Indonesia remained unchanged.

Wall Street provided a broadly positive lead as major indices opened higher on Wednesday and stayed in the green throughout the session.

The Dow Jones Industrial Average rose by 99.46 points, or 0.24 percent, closing at 40,842.79. The NASDAQ surged by 451.98 points, or 2.64 percent, to end at 17,599.40, and the S&P 500 rallied by 85.86 points, or 1.58 percent, finishing at 5,522.30.

The early rally on Wall Street was a response to strong corporate earnings from Advanced Micro Devices (AMD), Starbucks (SBUX), and DuPont (DD). The market continued its upward trend following the Federal Reserve's monetary policy announcement. Although the Fed left interest rates unchanged, subtle changes in their statement may imply potential rate cuts in the future.

Fed Chair Jerome Powell suggested during his post-meeting press conference that a rate cut in September could be likely if the economic data remains stable.

Oil prices surged on Wednesday amid growing concerns over potential supply disruptions due to rising tensions in the Middle East and a report indicating a larger-than-expected decrease in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for September rose by $3.18, or 4.3 percent, closing at $77.91 per barrel.

Domestically, Indonesia is set to release its July consumer price data later today. In June, the overall inflation rate decreased by 0.08 percent month-over-month and increased by 2.51 percent year-over-year, with core CPI rising by 1.90 percent annually.