Indonesian shares closed at a near one-month high on Friday with investors awaiting the central bank's policy rate decision later in the day, while renewed tensions over Korean peninsula weighed on other markets in the region.
Indonesia shares ended 0.09 percent up, after hitting an all-time high earlier in the session, and added 0.7 percent on the week. A Reuters poll showed that Indonesia's central bank is expected to keep its benchmark interest rate unchanged on Friday. "Seems like the market movement points to the fact that they are going to cut the rate," said Taye Shim, head of research, Mirae Asset Sekuritas.
Bank Indonesia surprised the market with a rate cut last month, as officials cited weaker-than-expected second-quarter economic growth, a low inflation rate, a stable rupiah and its forecast of fewer rate hikes in the United States as reasons behind the cut, its first since October. Data showed that August headline consumer prices had slowed, rising 3.82 percent from a year ago compared with July's 3.88 percent.
"It's pretty much a condition where the local macro backdrop remains very favourable for monetary easing," Shim added. Other markets in the region were edgy after North Korean Foreign Minister Ri Yong Ho said he believes the country could consider a nuclear test on an "unprecedented scale" in the Pacific Ocean.
Thai shares ended down, with energy and industrial stocks being the biggest drags on the index. Oil and gas refiner PTT Pcl and Airports of Thailand Pcl led the losses, closing down 1.9 percent and 2.1 percent, respectively. The index ended the week 0.1 percent lower. The Philippine stock index closed flat, adding 1.2 percent for the week. Malaysia's stock market was closed for a local holiday.
Comments
Comments are closed.