Indonesian Equities Rebound

Indonesian stocks rose 51 points or 0.8% to 6,511 in Wednesday morning trade, snapping a five-session slide as U.S. futures firmed ahead of the Federal Reserve’s policy decision later today. Locally, focus turned to the new finance minister’s early fiscal steps and credibility measures, with Suahasil Nazara pledging budget discipline, including the 3% deficit cap. The upturn was tempered, however, by caution with Bank Indonesia’s meeting next week amid renewed rupiah weakness and foreign outflows. Meanwhile, MSCI’s November review looms, with downgrade risks to frontier market status if reforms falter. August economic data in main trading partner China showed mixed signals, with retail sales slowing and unemployment ticking higher, while industrial output improved. Gains were broad-based, led by energy, industrials, and basic materials. Notable movers included Impack Pratama Industri (4.6%), Summarecon Agung (4.2%), Vale Indonesia (2.8%), and Timah Tbk (2.5%).