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2025-09-17 16:55:48
Indonesia's unexpected interest rate cut boosts stock markets, Asian markets poised for action. ⑴ Bank Indonesia unexpectedly announced a 25 basis point interest rate cut to prioritize economic development, boosting the Indonesian stock market, which rose 0.7% and is on track to reach a new record high. ⑵ Despite domestic unrest, investors' confidence in the Indonesian government's ability to maintain fiscal discipline remained unshaken. The rupiah remained largely stable against the US dollar, and the 10-year government bond yield remained flat at 6.339%. ⑶ Within the region, most Asian emerging market stocks hovered at high levels after nine consecutive days of gains. The overall gains were capped by some markets, such as South Korea, which retreated from their all-time highs. ⑷ Global stock markets showed optimism on expectations that the Federal Reserve would announce a rate cut and potentially signal further easing, leading to a rise in risk appetite. ⑸ Lower US dollar interest rates generally increase the appeal of emerging market assets, offering investors higher yields and potential currency appreciation.
