These trade and inflation figures were able to offset the negative impact caused by the higher minimum secondary statutory reserves-requirement to four percent. Lastly, positive openings of European stocks on Tuesday (01/10) also contributed to the positive market sentiments in Indonesia. However, foreign investors continued to record a net sell of Indonesian stocks, while domestic investors recorded a net purchase.

The Indonesian rupiah appreciated against the US dollar due to Indonesia's 0.35 percent deflation rate in September and the USD $130 million trade surplus in August. Previously, limited inflation was forecast but investors were pleased to see deflation in September as the country's inflation rate is still rather high at 8.40 percent (yoy). Market players were also relieved to see the country's current account deficit ease slightly as the country posted a trade surplus of USD $130 million in August.


| Source: Bank Indonesia

The deadlock that caused the shutdown of the US economy resulted in rising currencies in Asia. Moreover, various data that were released in Asia provided positive market sentiments. These data include the low inflation rate but higher NBS manufacturing PMI of South Korea and Japan's Tankan manufacturing Indices.

Bahas