Market Review
The Jakarta Composite Index rallied 2.71%, adding 155.73 points to close at 5,902, extending its recovery to the strongest two-day gain in roughly six years. Sentiment was buoyed by Bank Indonesia’s 75 bps of cumulative rate hikes over three weeks and Governor Warjiyo’s commitment to allow bond yields to rise to attract foreign inflows. The rupiah gained 0.9%, its best single-day performance since May 2025.
Asian markets closed broadly lower ahead of the US CPI release. The Nikkei fell 1.89%, the KOSPI dropped 4.52%, and the Hang Seng shed 0.64%. US-Iran tensions escalated after an Apache helicopter was downed and US forces conducted retaliatory strikes near the Strait of Hormuz, pushing Brent crude toward USD 91 per barrel.
European markets opened cautiously. The FTSE 100 fell 0.71% and EuroStoxx 50 declined 0.97%, with investors concerned that a hot US inflation print could spur faster Fed rate hikes. Gold slid toward USD 4,000 amid rising real rate expectations, keeping risk appetite subdued across global markets.
Regards, Aldiracita Research
