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Everything Pointing Upward for Indonesia’s Irresistible Markets

  • Benchmark gauge closed within striking distance of April peak
  • Gains follow annual budget and plans to shrink fiscal deficit
Updated on

At a time when most of the world’s stock markets are languishing due to the Federal Reserve’s tightening cycle, Indonesia’s equity benchmark is pushing toward a record high.

The benchmark Jakarta Composite Index closed just 0.6% away from a peak set in April after briefly surpassing that level on Tuesday. Elevated commodity prices and optimism about the economic outlook are driving gains in Southeast Asia’s biggest equity market -- which has powered its way to a gain of almost 10% this year.