(RTTNews) - The Indonesia stock market ended the three-day losing streak in which it had slumped almost 220 points or 2.2 percent. The Jakarta Composite Index now sits just shy of the 7,280-point plateau and it's expected to open in the green again on Thursday.
The global forecast for the Asian markets is upbeat on news of the two-week ceasefire between the United States and Iran - although the Asian markets have already reacted to this news, so the upside may be more measured than the spikes in the European and U.S. markets.
The JCI finished sharply higher on Wednesday following gains from the financial shares, cement stocks, telecoms and resource companies. For the day, the index rallied 308.18 points or 4.42 percent to finish at 7,279.21 after trading between 7,118.58 and 7,281.86. Among the actives, Bank CIMB Niaga collected 1.40 percent, while Bank Mandiri vaulted 3.55 percent, Bank Danamon Indonesia climbed 1.56 percent, Bank Negara Indonesia soared 7.69 percent, Bank Central Asia strengthened 3.85 percent, Bank Rakyat Indonesia expanded 3.41 percent, Indosat Ooredoo Hutchison rallied 4.33 percent, Indocement jumped 3.48 percent, Semen Indonesia advanced 1.69 percent, Indofood Sukses Makmur improved 1.14 percent, United Tractors spiked 3.67 percent, Astra International accelerated 5.08 percent, Energi Mega Persada surged 7.14 percent, Astra Agro Lestari added 0.97 percent, Aneka Tambang skyrocketed 7.78 percent, Vale Indonesia increased 8.30 percent, Timah gained 8.57 percent and Bumi Resources was up 6.78 percent.
The lead from Wall Street is broadly positive as the major averages opened sharply higher and stayed that way throughout the trading day, ending at session highs.
The Dow surged 1,325.46 points or 2.85 percent to finish at 47,909.92, while the NASDAQ rallied 617.14 points or 2.80 percent to end at 22,634.99 and the S&P 500 jumped 165.96 points or 2.51 percent to close at 6,782.81.
The initial surge on Wall Street came in reaction to news that the U.S., Israel and Iran have agreed to a two-week ceasefire.
President Donald Trump said he has agreed to suspend the bombing and attack of Iran for two weeks subject to Tehran agreeing to the complete and immediate opening of the Strait of Hormuz.
A subsequent statement from Iran's Foreign Minister Abbas Araghchi indicated the Strait of Hormuz will be reopened for a period of two weeks if the attacks against Iran are halted.
Crude oil prices went into a tailspin Wednesday as supply-disruption risks dissipated following a two-week ceasefire agreement between the U.S. and Iran. West Texas Intermediate crude for May delivery was down $18.15 or 16.07 percent at $94.80 per barrel.
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