Indonesian shares rallied 125 points, or 2.5%, to 5,119 in early Tuesday trade, snapping a three-session losing streak as bargain hunters returned following a record $82 billion two-day selloff that had driven the market to a six-year low. The slump was sparked by an MSCI warning that Indonesia could be removed from its global indexes next year.
In response, regulators moved to shore up investor confidence, proposing to exclude stocks with highly concentrated ownership from benchmark calculations in an effort to improve price discovery.
Globally, U.S. equity futures advanced as Wall Street rebounded overnight, led by technology stocks. Gains were broad-based, with financials, healthcare, basic materials, and energy among the top-performing sectors. Meanwhile, China, Indonesia’s main trading partner, left its benchmark lending rates unchanged for a 17th consecutive month in October, in line with market expectations.
Among notable early movers, Telkom Indonesia surged 13.6%, while Charoen Pokphand climbed 8.2%, Bank Mandiri rose 7.7%, and Aneka Tambang gained 7.3%.
