Foreign capital inflow helps Indonesia's stock index hit a historic high.

Jin10 Data reported on August 14 that Indonesia's benchmark stock index is expected to close at a historical high on Thursday, as foreign investors return to buy stocks in the country. The Jakarta Composite Index has rebounded over 30% from its April low. Global funds have net bought $283 million worth of Indonesian stocks in August, reversing two consecutive months of capital outflow. The foreign buying highlights a renewed confidence in Southeast Asia's largest economy, bolstered by expectations of further monetary easing. The Indonesian Central Bank cut interest rates last month and hinted at readiness to cut rates again to boost economic growth. Market sentiment has also improved due to stronger-than-expected second-quarter economic growth and several Indonesian companies being added to the MSCI index. The decline in Indonesian government bond yields has prompted more local investors to turn to stocks and other high-yield assets, with the 10-year yield down over 50 basis points this year to a two-year low.