Indonesian Stocks Rebound After Record Rout

Indonesian shares surged 125 points, or 2.5%, to 5,119 in early Tuesday trade, snapping a three-session losing streak as bargain hunters returned after a record $82 billion two-day rout drove the market to a six-year low following MSCI’s warning that Indonesia could be removed from its global indexes next year. Meanwhile, regulators sought to restore confidence by proposing to exclude stocks with highly concentrated ownership from benchmark calculations to improve price discovery. Globally, U.S. equity futures strengthened as Wall Street rebounded overnight, led by technology shares. Gains spread across sectors, with financials, healthcare, basic materials, and energy among the top performers. Meanwhile, the People’s Bank of China kept its benchmark lending rates unchanged for a 17th consecutive month in October, in line with market expectations. Among early gainers, Telkom Indonesia jumped 13.6%, followed by Charoen Pokphand (8.2%), Bank Mandiri (7.7%), and Aneka Tambang (7.3%).