The Composite Stock Price Index (IHSG) of the Indonesia Stock Exchange (IDX) rebounded on Wednesday amid market players adopting a wait-and-see attitude towards US inflation data.
The Jakarta Composite Index (JCI) opened higher by 53.81 points, or 0.71 percent, to 7,682.42. Meanwhile, the 45-stock blue chip index, or LQ45, rose 4.07 points, or 0.53 percent, to 774.00.
"Weak US employment data had strengthened hopes of a Fed interest rate cut. However, if US inflation rises unexpectedly, these expectations could weaken," the Lotus Andalan Sekuritas Research Team said in a study.
Internationally, market participants are awaiting the release of two US inflation data figures: the Producer Price Index (PPI) for August 2025, scheduled for Wednesday, and the Consumer Price Index (CPI) on Thursday (September 11).
These two data will determine the direction of the Federal Reserve's (The Fed) interest rate policy at its meeting next week.
In Asia, China will release its August 2025 inflation figures, which include the CPI and PPI. Goldman Sachs projects China's PPI to decline 2.9 percent year-on-year (yoy) , although the monthly figure could be positive. Meanwhile, the CPI is expected to weaken 0.2 percent year-on-year.
Domestically, market players are awaiting the release of the Consumer Confidence Index (CCI) for August 2025 by Bank Indonesia (BI). The index previously rose slightly to 118.1 in July 2025, the highest level since April 2025.
The increase in the July 2025 IKK was supported by improving economic prospects, income expectations, and job availability.
