FX.co ★ Indonesia Shares Rise Modestly

In early trading on Wednesday, Indonesian stocks experienced a 34-point or 0.4% increase, reaching 8,692. This rise comes after a dip in the market the previous day, supported by advances across various sectors, particularly in communications, consumer services, and non-energy minerals. The uptick in sentiment was bolstered by newly released data indicating that retail sales growth in Indonesia reached its highest point in three months in October, largely due to an expanded cash handout initiative. Additionally, positive sentiment was further enhanced by China’s Consumer Price Index, with November setting a 21-month inflation record for Indonesia's leading trading partner. Despite these gains, they were tempered by caution ahead of the U.S. Federal Reserve's decision expected later today, where markets anticipate a 25 basis point rate cut albeit with a possibility of hawkish forward guidance. In related news, there are concerns over the potential collapse of Indonesia’s trade agreement with the U.S., following a preliminary accord in late July. The Financial Times reported U.S. trade envoy Jamieson Greer’s comment that Jakarta is "backtracking" on its commitments. Key stock movements included XL Smart up by 6.7%, Indosat rising 1.7%, Perusahaan Gas Negara increasing by 2.2%, and Astra International up 1.0%.