The Jakarta Composite Index (IHSG) fell 1.30 percent to 5,368.64 in the morning session at 09:58 WIB, after opening at 5,442.30. The index touched a daily low of 5,349.75. It had closed the previous session at 5,439.26.
The index lost 70.62 points from the previous close at that reading. Trading volume in the morning session reached 126.06 million lots, with a transaction value of 4.82 trillion rupiah.
A busy week for central banks
The week ahead carries a dense calendar of monetary policy decisions. The State Bank of Pakistan meets on 26 October, while the Federal Reserve, the Bank of Canada, the Reserve Bank of New Zealand and the Bank of Thailand decide on 28 October.
The European Central Bank follows on 29 October and the Bank of Japan on 30 October. Consensus expects the Fed funds range to stay at 3.75-4.00 percent, and the ECB main refinancing rate at 2.65 percent. Markets also expect the BoJ policy rate to hold at 1.25 percent.
The Fed raised rates by 25 basis points in September. The BoJ raised its policy rate from 1.00 percent that same month.
Data and politics ahead
US PCE inflation for August stood at 3.4 percent year on year, with core PCE at 3.0 percent. Both readings will be watched closely as the Fed weighs its next move.
US third-quarter GDP and September PCE data are both due on 29 October.
Related: Jakarta stocks rise 1.7% as foreigners sell Rp576.78 billion · Jakarta stocks recover from deep dip to close 1.12% higher
Source: Federal Reserve · Bank of Japan
