Indonesian shares rise after expected interest rate hikes

Aug 29 (Reuters) - Indonesian shares extended early gains after the central bank hiked interest rates on Thursday, closing 1.9 percent up for the day.

In the late afternoon, Bank Indonesia announced increases of 50 basis points for two key interest rates and it forecast that the current-account deficit will narrow in the third quarter.

Jakarta's Composite Index closed at 4,103.59, its day's high. Large caps led the rally, including Bank Rakyat Indonesia, Bank Mandiri and Astra International. (Reporting by Viparat Jantraprap; Editing by Richard Borsuk)