IHSG Opens in the Green, Poised to Test Resistance as Wall Street and Asian Markets Rally
Jakarta, VIVA – The Jakarta Composite Index (IHSG) opened 36 points or 0.59 per cent higher at the 6,272 level at the start of trading on Monday, 3 August 2026.
Head of Retail Research Analyst Fanny Suherman predicted that the IHSG would test resistance amid the risk of a correction in today’s trading.
“The IHSG has the opportunity to continue its rise towards strong resistance at 6,300. However, if it is not strong enough to break above 6,300, the IHSG could be corrected again,” said Fanny in her daily research note on Monday, 3 August 2026.
Asian stock markets surged in trading last Friday, following a rally on Wall Street after the earnings reports of giant technology companies eased concerns over investment prospects in the AI sector.
In Japan, the Nikkei 225 index soared 4 per cent and the Topix rose 1.3 per cent. Meanwhile in South Korea, the KOSPI index jumped 18 per cent, and the KOSDAQ surged 12 per cent.
At the same time, Hong Kong’s Hang Seng rose 0.1 per cent, Taiwan’s Taiex strengthened 8 per cent, and Australia’s ASX 200 gained 0.1 per cent. The FTSE Straits Times, however, weakened 0.8 per cent, while the FTSE Malay KLCI added 0.3 per cent.
The strengthening was driven by a surge in the share prices of Microsoft and Amazon in Wall Street trading. The financial performance and projections of the two companies revived optimism over the prospects of AI demand, while also easing investor concerns about the size of technology companies’ capital expenditure.
Meanwhile, high volatility in the South Korean stock market also prompted local authorities to restrict a number of leveraged investment products, which had previously caused large losses for retail investors. In Japan, the Bank of Japan kept its benchmark interest rate unchanged at 1.00 per cent, noting that core inflation is expected to exceed target.
“IHSG support is at the 6,120–6,200 level, while resistance is in the 6,270–6,300 range,” she said.
For context, Wall Street stock indices closed uniformly higher in trading last Friday. The surge in Amazon shares after it posted second-quarter 2026 results that exceeded expectations was the driver of Wall Street’s gains.
The Dow Jones Industrial Average rose 0.53 per cent, the S&P 500 strengthened 0.7 per cent, and the Nasdaq Composite added 1 per cent. The gains came amid investor doubt over the commitment of Fed Chair Kevin Warsh to controlling inflation.
Although Warsh reiterated the central bank’s focus on suppressing inflation, his remark that there is ‘no magic wand’ to address price pressures was seen as insufficient to reassure the market.