FX.co ★ Indonesia Stocks Bounce Back

Indonesian shares rose 34 points, or 0.5%, to 6,472 in Thursday morning trade, breaking a six-session losing streak as U.S. stock futures climbed following Wall Street’s overnight pullback after the Federal Reserve’s first rate hike in three years. Market sentiment improved after newly appointed Finance Minister Suahasil Nazara pledged to maintain a credible budget framework, with economists citing his fiscal expertise and long-standing experience at the ministry as reassuring factors.

Mixed August economic data from China, Indonesia’s key trading partner, also fueled expectations of additional stimulus measures from Beijing. However, the advance was capped by mounting inflation concerns driven by higher oil prices and looming El Niño-related risks. Investor caution was further reinforced ahead of next week’s Bank Indonesia policy meeting, amid renewed pressure on the rupiah and signs of foreign capital outflows.

Despite these headwinds, all major sectors moved higher, led by energy, transportation, and cyclical stocks. Early notable gainers included Merdeka Battery Materials (up 3.0%), Indika Energy (2.6%), Indosat Tbk. (1.7%), and Bank Mandiri (1.2%).