Indonesia Bourse May Hand Back Wednesday's Gains

(RTTNews) - The Indonesia stock market bounced higher again on Wednesday, one day after snapping the five-day winning streak in which it had rallied more than 310 points or 4.5 percent. The Jakarta Composite Index now rests just above the 7,140-point plateau, although it may head south again on Thursday. The global forecast for the Asian markets is negative on concerns over rising bond yields. The European markets were mixed and the U.S. bourses were sharply lower and the Asian markets also figure to open under pressure.

The JCI finished modestly higher on Wednesday following gains from the financial, food, cement and resource sectors.

For the day, the index added 47.86 points or 0.67 percent to finish at 7,142.46 after trading between 7,109.22 and 7,170.72.

Among the actives, Bank CIMB Niaga collected 1.11 percent, while Bank Mandiri added 0.93 percent, Bank Danamon Indonesia rallied 1.20 percent, Bank Negara Indonesia accelerated 1.57 percent, Bank Central Asia spiked 2.37 percent, Bank Rakyat Indonesia gained 1.19 percent, Indosat Ooredoo Hutchison rose 2.44 percent, Indocement soared 3.40 percent, Semen Indonesia strengthened 1.58 percent, Indofood Sukses Makmur climbed 1.27 percent, United Tractors rose 0.23 percent, Astra International plunged 3.91 percent, Energi Mega Persada jumped 1.85 percent, Astra Agro Lestari improved 0.83 percent, Aneka Tambang surged 6.59 percent, Vale Indonesia skyrocketed 12.63 percent, Timah advanced 0.87 percent and Bumi Resources tanked 3.28 percent.

The lead from Wall Street is bleak as the major averages opened lower on Wednesday and only got worse as the day progressed, ending near session lows.

The Dow tumbled 816.80 points or 1.91 percent to finish at 41,860.44, while the NASDAQ dropped 270.07 points or 1.41 percent to close at 18,872.64 and the S&P 500 sank 95.85 points or 1.61 percent to end at 5,844.61.

The weakness on Wall Street was the result of a continued increase by bond yields, with the 30-year bond yield climbing above 5 percent due to concerns a new U.S. tax bill could worsen the country's deficit.

President Donald Trump's sweeping tax and spending bill is one step closer to a full vote in the House of Representatives, with economists warning the proposal would add more than $2.5 trillion to the federal debt over the next decade.

Treasury yields saw further upside after the Treasury Department revealed this month's auction of $16 billion worth of 20-year bonds attracted below average demand.

Crude oil futures fell under pressure Wednesday after a report released by the Energy Information Administration showed U.S. crude oil inventories unexpectedly increased last week. West Texas Intermediate crude for July delivery slid $0.46 to 0.7 percent to $61.57 a barrel.