Indonesia's Jakarta Composite Index (IHSG) Up 1.06% on Thursday
Although at the start of the day the Jakarta Composite Index (IHSG) went into red territory, it rebounded and managed to gain 1.06 percent to 4,594.85 points at the end of Thursdays' trading day (24/10). Factors that positively influenced the IHSG were net foreign buying of Indonesian stocks and a number of corporate earnings reports that met investors' expectation. These included various property companies such as Sentul City and Modernland Realty as well as a number of banks. The rupiah, on the other hand, depreciated again.
In line with various other Asian currencies, the Indonesian rupiah exchange rate depreciated slightly against the US dollar after the market responded negative to the refusal of China's central bank to inject funds into China's financial system. This fueled expectation that China's economic growth will continue to slow down. The rupiah was also affected by the weakening Euro after several manufacturing companies in the Eurozone posted slowing growth figures.
Asian stock indices were mostly down even though China's HSBC Manufacturing PMI rose. As China's central bank refused to inject funds into the country's financial markets, investors sold stock on China's stock exchange. Negative market sentiments were also brought about by a number of corporate earnings reports that showed lower profits. These companies included China Merchants Property Development Co, Huaneng Power International Inc and Wipo Ltd.
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