The Indonesia stock market on Monday halted the seven-day losing streak in which it had plummeted almost 580 points or 9.2 percent. The Jakarta Composite Index now rests just above the 6,065-point plateau and it's called higher again on Tuesday.
The global forecast for the Asian markets is broadly positive as they recover from heavy selling last week. The European and U.S. bourses were firmly higher and the Asian markets are expected to follow that lead.
The JCI finished sharply higher on Monday following gains from the financial shares, cement stocks and resource companies.
For the day, the index surged 205.19 points or 3.50 percent to finish at 6,067.54 after trading between 5,735.47 and 6,070.73.
Among the actives, Bank Danamon Indonesia advanced 2.80 percent, while Bank Mandiri jumped 1.90 percent, Bank CIMB Niaga spiked 4.68 percent, Indosat climbed 1.49 percent, Indocement rallied 5.42 percent, Semen Indonesia soared 8.73 percent, Indofood Suskes added 3.31 percent, Astra Agro Lestari accelerated 2.91 percent, Aneka Tambang surged 17.12 percent, Vale Indonesia expanded 13.64 percent, Timah skyrocketed 21.30 percent and Bumi Resources plunged 5.63 percent.
The lead from Wall Street is upbeat as stocks opened higher on Monday and stayed firmly in the green throughout the session, cutting into last week's heavy losses.
The Dow climbed 229.29 points or 0.76 percent to finish at 30,211.91, while the NASDAQ spiked 332.70 points or 2.55 percent to end at 13,403.39 and the S&P 500 gained 59.62 points or 1.61 percent to close at 3,773.86.
The rebound on Wall Street came as traders looked to pick up stocks at somewhat reduced levels after the markets saw their biggest weekly decline since October.
Traders continued to keep an eye on heavily-shorted stocks like GameStop (GME) and AMC Entertainment, which have seen considerable volatility amid speculative trading by retail investors. Share of GameStop plunged by 30.8 percent on the day, while shares of AMC edged up by 0.3 percent after seeing early strength.
In economic news, the Institute for Supply Management said the pace of growth in U.S. manufacturing activity slowed more than expected in January. Also, the Commerce Department said U.S. construction spending increased by slightly more than expected in December.
Crude oil futures ended sharply higher Monday on optimism about improved vaccination rollout and OPEC production cuts. West Texas Intermediate Crude oil futures for March rose $1.35 or 2.6 percent at $53.55 a barrel.
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