Indonesia Bourse May Extend Tuesday's Gains

(RTTNews) - The Indonesia stock market on Tuesday snapped the two-day slide in which it had dropped more than 90 points or 1.2 percent. The Jakarta Composite Index now sits just above the 7,110-point plateau and it's tipped to open in the green again on Wednesday.

The global forecast for the Asian markets is upbeat on optimism over earnings season. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly higher on Tuesday as the financials were mostly higher and the resource companies were mixed, although Bumi Resources alone was enough to boost the market into the green almost by itself.

For the day, the index added 36.99 points or 0.52 percent to finish at 7,110.81 after trading between 7,099.84 and 7,165.95.

Among the actives, Bank CIMB Niaga jumped 1.87 percent, while Bank Mandiri improved 1.49 percent, Bank Danamon Indonesia collected 0.36 percent, Bank Negara Indonesia tumbled 1.87 percent, Bank Central Asia soared 4.01 percent, Indosat Ooredoo Hutchison surged 5.83 percent, Indocement climbed 1.29 percent, Semen Indonesia tanked 2.89 percent, Indofood Sukses Makmur surrendered 2.03 percent, United Tractors declined 1.38 percent, Astra International strengthened 1.52 percent, Energi Mega Persada advanced 0.95 percent, Astra Agro Lestari rose 0.38 percent, Aneka Tambang retreated 1.69 percent, Vale Indonesia stumbled 1.36 percent, Timah slumped 1.41 percent, Bumi Resources skyrocketed 21.18 percent and Bank Rakyat Indonesia was unchanged.

The lead from Wall Street is positive as the major averages opened higher on Tuesday and remained well in the green throughout the trading day.

The Dow jumped 263.71 points or 0.69 percent to finish at 38,503.69, while the NASDAQ spiked 245.33 points or 1.59 percent to end at 15,696.64 and the S&P 500 rallied 59.95 points or 1.20 percent to close at 5,070.55.

Quarterly earnings guided the markets, with Globe Life, GE Aerospace, Kimberly-Clark and General Motors advancing on strong results.

In economic news, the Commerce Department reported that new home sales jumped more than expected in March, although building permits slumped.

Traders await more economic data this week, including the release of first-quarter U.S. GDP data as well as the core personal-consumption expenditures (PCE) price index, which is the Fed's preferred measure of inflation.

Oil prices moved higher on Tuesday after data showed a slowdown in U.S. manufacturing activity in April, raising hopes the Federal Reserve will start cutting interest rates soon. West Texas Intermediate crude oil futures for June rose $1.46 or 1.78 percent at $83.36 a barrel.