04/01/2012 (Jakarta Globe) - Indonesian stocks rebounded on Tuesday, trailing gains across the region after a spate of manufacturing reports showed economic growth in Asia wasn’t slowing.

The Jakarta Composite Index added 48.74 points, or 1.3 percent, to close at 3,857.88, its biggest gain since Dec. 16. Gainers beat decliners by 170 to 54, with Rp 3.54 trillion ($389 million) in shares changing hands on the Indonesia Stock Exchange.

Almost 5.9 billion shares were traded on Tuesday, more than double the 2.72 billion-share volume from the day before, indicating that international investors had returned from the New Year break. Foreign investors bought Rp 795 billion more than they sold.

Benchmark indexes in South Korea, Hong Kong and India surged by more than 2 percent, after manufacturing indexes in China and India climbed above 50 in December. A reading above 50 indicates expansion in manufacturing activities while less than 50 indicates contraction.

“Regional markets were up quite strongly and it lifted the Indonesian market,” said Mastono Ali, an analyst with CIMB Securities in Jakarta.

Mastono said that investors were also reacting to Monday’s report that showed Indonesia’s December inflation rate was 3.8 percent, a 21-month low that gives the central bank room to cut its key interest rate.

The mining sector rose the most in Tuesday’s market, with coal miners leading the advance. The sector surged 2.3 percent, its biggest gain since Dec. 1.

Rising crude oil prices amid the heightened tensions in the Persian Gulf might mean higher coal prices.

Tambang Batubara Bukit Asam, a state-controlled coal miner, rose 6.1 percent to Rp 18,400. Bumi Resources, the country’s biggest coal miner by production, gained 3.4 percent to Rp 2,275.

Crude palm oil for March delivery increased by 1.6 percent in Bursa Malaysia. London Sumatra Indonesia, a palm plantation company, jumped 4.6 percent to Rp 2,275.

Automotive distributor Astra International gained 1.8 percent to Rp 75,000, while Indomobil Sukses Internasional jumped 9.5 percent to Rp 14,350. The two companies were the biggest gainer in the miscellaneous sector, which rose 1.9 percent.

The finance sector gained 1.1 percent and the agribusiness sector was up 1 percent on the back of raising palm oil futures.

The rupiah weakened 0.4 percent against the dollar to trade at 9,160, according to data from Bank Indonesia.