Higher Open Called For Indonesia Stock Market

(RTTNews) - The Indonesia stock market bounced higher again on Friday, one day after snapping the modest two-day winning streak in which it had collected more than 80 points or 1.3 percent. The Jakarta Composite Index now rests just above the 6,400-point plateau and it's expected to open to the upside again on Monday.

The global forecast for the Asian markets is cautiously optimistic on an improved outlook for interest rates, although erratic tensions in the Middle East may limit the upside. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The JCI finished sharply higher on Friday following gains from the financial shares, cement stocks and resource companies.

For the day, the index jumped 65.94 points or 1.04 percent to finish at the daily high of 6,409.65 after trading as low as 6,347.43.

The lead from Wall Street is positive as the major averages shook off early volatility before settling solidly higher for the balance of the day.

The Dow added 151.83 points or 0.28 percent to finish at 54,036.93, while the NASDAQ jumped 342.26 points or 1.30 percent to end at 26,690.62 and the S&P 500 gained 47.68 points or 0.62 percent to close at 7,757.64.

For the week, the NASDAQ spiked 5.2 percent, the S&P 500 jumped 3.6 percent and the Dow rose 3 percent.

The strength on Wall Street came amid easing concerns about the outlook for interest rates after the Labor Department unexpectedly reported a modest decrease in U.S. employment in July.

While the report pointed to some weakness in the labor market, the data is also seen as decreasing the chances of the Federal Reserve raising interest rates next month.

Crude oil prices advanced on Friday amid lingering uncertainty in the Middle East following attacks by the Iran-aligned Houthis on a military camp in Yemen and in Saudi Arabia. West Texas Intermediate crude for September delivery was up $0.81 or 1.1 percent at $78.10 a barrel.

Closer to home, Indonesia will see July results for its consumer confidence index later today; in June, the index score was 117.8.