IHSG Opens in the Green, Poised to Test Resistance as Wall Street and Asian Markets Rally

The Indonesia Stock Exchange (IHSG) opened 36 points, or 0.59 percent, higher at 6,272 at the start of trading on Monday, 3 August 2026. Head of Retail Research Analyst Fanny Suherman predicted the IHSG would test a resistance level, shadowed by the potential for a correction during the day’s trading. “The IHSG has the opportunity to continue its rise to a strong resistance at 6,300. However, if it is not yet strong enough to break above 6,300, the IHSG has the potential to correct again,” Fanny said in her daily research note on Monday. Asian stock markets surged in trading on Friday last week, following a rally on Wall Street after earnings reports from giant technology companies eased concerns about the investment outlook in the AI sector. In Japan, the Nikkei 225 index soared 4 percent and the Topix rose 1.3 percent. In South Korea, the KOSPI index jumped 18 percent, and the KOSDAQ surged 12 percent. Meanwhile, Hong Kong’s Hang Seng rose 0.1 percent, Taiwan’s Taiex strengthened 8 percent, and Australia’s ASX 200 gained 0.1 percent. The FTSE Straits Times weakened 0.8 percent and the FTSE Malay KLCI added 0.3 percent. The strengthening was driven by a surge in Microsoft and Amazon share prices on Wall Street. The financial performance and projections of both companies revived optimism about the prospects for AI demand, while easing investor concerns regarding the large capital expenditure of technology companies. High volatility in the South Korean stock market also prompted local authorities to restrict a number of leveraged investment products, which had previously caused significant losses for retail investors. In Japan, the BOJ maintained its benchmark interest rate at 1.00 percent, noting that core inflation is expected to exceed the target. “IHSG support is at the 6,120-6,200 level, while IHSG resistance is in the 6,270-6,300 range,” she stated. For context, Wall Street stock indices closed uniformly higher in trading on Friday last week. A surge in Amazon shares after reporting second-quarter 2026 performance that exceeded expectations was the driver of Wall Street’s strengthening. The Dow Jones Industrial Average rose 0.53 percent, the S&P 500 strengthened 0.7 percent, and the Nasdaq Composite added 1 percent. The strengthening was caused by investor doubts regarding the commitment of Federal Reserve Chair Kevin Warsh to controlling inflation. Although Warsh reiterated the central bank’s focus on curbing inflation, his statement that there is ‘no magic wand’ to address price pressures was deemed insufficient to calm the market.