China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
The Indonesian markets are keen on a likely ratings upgrade by Standard and Poor’s after talks held with President Widodo earlier this week. A credit rating upgrade by the rating agency, would not surprise markets but be a key driver for the next few trading days.
Talks of an upgraded rating to the Indonesian economy have been hinting markets since the past two years, till date. Researchers believe the impact would eventually subside down, not making any major impact on the financial markets.
However, the credit rating would affect the outlook for foreign direct investment, effectively raising the investment ceiling for foreign investors, leading to additional FDI inflows. The actual FDI (balance of payment basis) has fallen to USD 18 billion in 2015, down from USD 25 billion in 2014. The government had previously targeted up to USD 35-40bn in annual FDI, as part of the ambitious USD 450bn 5-year infrastructure plan, DBS said in a research note.
Meanwhile, it remains little to analyze whether or not the US-based rating agency will extend a higher rating, but the government still needs to implement certain necessary reforms to boost the economic infrastructure. The reforms, aimed at reducing the cost of doing business in Indonesia, announced last year, has remained a theory since then and hence, needs immediate action to be taken upon.
At 6:20GMT, USD/IDR rose 0.33 pct to 13,305.5.
