Around the World's Markets: Jakarta

INDONESIAN stocks closed slightly higher after their sharp fall on Monday, but sentiment remained weak amid escalating violence in East Timor. The composite index ended up 4.92 points, or 0.91 per cent, at 545.35. "The sentiment remains weak with sharp criticism of the government," said a fund manager.

The Supreme Audit Agency said its inquiry into the Bali Bank scandal found evidence of irregularities. "The market will react positively if the scandal is resolved," said a trader.