The Indonesia stock market bounced higher again on Thursday, one day after ending the three-day winning streak in which it had advanced more than 80 points or 1 percent. The Jakarta Composite Index now rests just above the 7,900-point plateau and its looking at another strong start again on Friday.
The global forecast for the Asian markets is upbeat on optimism for the outlook for both the economy and for interest rates. The European and U.S. markets were sharply higher and the Asian bourses are expected to open in similar fashion - although there may be profit taking as the day progresses.
The JCI finished sharply higher on Thursday, led by strong gains from the financial shares and resource stocks.
For the day, the index advanced 76.26 points or 0.97 percent to finish at 7,905.39 after trading between 7,853.35 and 7,910.56.
Among the actives, Bank CIMB Niaga added 0.50 percent, while Bank Danamon Indonesia climbed 1.14 percent, Bank Negara Indonesia soared 2.19 percent, Bank Central Asia spiked 2.59 percent, Bank Rakyat Indonesia collected 0.93 percent, Bank Maybank Indonesia advanced 0.85 percent, Indosat Ooredoo Hutchison fell 0.23 percent, Indocement rose 0.37 percent, Semen Indonesia shed 0.51 percent, United Tractors lost 0.37 percent, Astra International added 0.48 percent, Energi Mega Persada surged 4.00 percent, Astra Agro Lestari jumped 1.97 percent, Aneka Tambang improved 0.73 percent, Jasa Marga slid 0.50 percent, Vale Indonesia perked 0.27 percent, Timah rallied 1.48 percent, Bumi Resources skyrocketed 11.43 percent and Bank Mandiri and Indofood Sukses Makmur were unchanged.
The lead from Wall Street is broadly positive as the major averages opened solidly higher and remained firmly in the green throughout the session.
The Dow surged 522.09 points or 1.26 percent to finish at 42,025.19, while the NASDAQ rallied 440.68 points or 2.51 percent to end at 18,013.98 and the S&P 500 advanced 95.38 points or 1.70 percent to close at 5,713.64.
The rally on Wall Street came as traders continued to digest the Federal Reserves decision on Wednesday to slash interest rates by half of a percentage point.
Fed officials also forecast continued rate cuts over the coming months and into next year, generating optimism the central bank will be able to engineer a soft landing for the economy.
Adding to the optimism about the economy, the Labor Department released a report showing first-time claims for U.S. unemployment benefits fell to a nearly four-month low last week.
Oil prices moved higher on Thursday with rising tensions in the Middle East raising possibility of disruptions in supply. West Texas Intermediate Crude oil futures for October ended up by $1.04 or 1.5 percent at $71.55 a barrel.