Jakarta. Indonesian stocks rallied on Thursday, with the benchmark Jakarta Composite Index (JCI) climbing 94 points, or 1.56%, to close at 6,110 as investors snapped up blue-chip stocks amid the corporate earnings season, shrugging off lingering uncertainty over Bank Indonesia's leadership succession and external headwinds.

The index traded between 6,106 and 6,186 during the session. Trading volume reached 26.61 billion shares worth Rp 12.58 trillion ($695.21 million) across more than 1.7 million transactions. Advancers outnumbered decliners 495 to 158, while 136 stocks were unchanged.

Pilarmas Investindo Sekuritas said the JCI rebounded despite pressure from global markets and uncertainty surrounding the appointment of Bank Indonesia's next governor. The rally was driven by gains in blue-chip stocks as investors positioned ahead of corporate earnings releases.

Indonesia's LQ45 index, which tracks the country's most liquid large-cap stocks, rose 1.66%, while the IDX30 gained 1.75%.

The government has yet to announce its nominee for Bank Indonesia governor. Under the Bank Indonesia Law, the president will nominate one candidate to the House of Representatives for a fit-and-proper test before the appointment is finalized.

"We believe the emergence of several names as potential Bank Indonesia governor candidates shows the government has multiple options with strong experience in monetary policy and financial system stability. However, what matters more to market participants is not who is ultimately appointed, but that person's commitment to preserving Bank Indonesia's independence, maintaining the credibility of monetary policy, and consistently keeping inflation under control while safeguarding rupiah stability," Pilarmas said.

The brokerage added that with global uncertainty and financial market volatility still elevated, investors are likely to favor a candidate with a strong central banking track record who can signal policy continuity.

Conversely, a prolonged selection process or uncertainty over future policy direction could increase short-term volatility in the rupiah and domestic financial markets. Until a decision is made, the appointment of the new central bank governor will remain one of the key catalysts closely watched by investors.

Regional markets, meanwhile, were mostly weaker as investors remained cautious toward risk assets after the US Federal Reserve left interest rates unchanged and geopolitical tensions between the United States and Iran intensified.

The Fed kept its benchmark interest rate at 3.5%-3.75%, reinforcing expectations that borrowing costs will remain elevated for longer despite rising inflation risks linked to renewed conflict in the Middle East.

Three Federal Open Market Committee members dissented and supported a rate hike, while Fed Chair Kevin Warsh stressed that the decision to leave rates unchanged should not be interpreted as a sign of a less restrictive policy stance, adding that policymakers would continue to respond to incoming economic data.

Geopolitical risks also remained in focus after reports that the US carried out airstrikes against Iran following attacks on American forces in the region.

At the same time, Tehran continued to insist on maintaining control over the Strait of Hormuz, preventing progress toward a potential agreement and fueling concerns over inflation and the outlook for global interest rates.

Across Asia, South Korea's Kospi fell 1.2%, Shanghai's SSE slipped 0.7%, while Japan's Nikkei rose 0.7% and Hong Kong's Hang Seng edged up 0.2%.

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