Indonesian Stocks Extend Strength as Week Begins

Indonesian shares rose 32 points, or 0.5%, to 6,070 in Monday’s morning session, building on gains from the prior session as softer U.S. jobs data lifted futures and eased pressure on the Fed to keep tightening. Bargain hunters continued to step in after local markets hit their lowest since mid-July. However, caution lingered ahead of key domestic releases this week, including September forex reserves, consumer sentiment, and August retail sales. Meanwhile, concerns persisted over Indonesia’s external vulnerabilities despite August’s trade surplus, with inflation risks growing after September CPI accelerated to 3.28%, edging closer to Bank Indonesia’s upper target band of 3-1/2%. In main trading partner China, markets remained shut for the Golden Week holiday, capping trading cues. Gains were broad across industry, transport, cyclicals, and basic materials. Early standouts included Rukun Raharja (7.8%), Kawasan Industri Jababeka (3.3%), Summarecon Agung (2.6%), and Jasa Marga (2.0%).