Jakarta. Indonesia’s benchmark, Jakarta Composite Index (JCI), tumbled nearly 2 percent on Monday to close at 8,117, even as most Asian markets rallied on renewed optimism over a potential US–China trade breakthrough later this week.

The index plunged 154.57 points, moving between 7,959–8,354, with 488 stocks declining, 215 rising, and 107 unchanged.

Trading activity was heavy, with a total volume of 38.1 billion shares, turnover reaching Rp 28.4 trillion ($1.7 billion), and transactions surpassing 2.8 million times.

Pilarmas Investindo Sekuritas mentioned the local market came under pressure from capital outflows and index rebalancing risks, despite upbeat sentiment across regional peers.

“Investors are still responding to Bank Indonesia’s report of a Rp 940 billion foreign outflow from domestic financial markets between October 20 and 23,” Pilarmas wrote in a note.

They added that market jitters intensified after Morgan Stanley Capital International’s methodology changes for Indonesian constituents, which could “trigger potential passive fund outflows” from the country’s equities.

While Jakarta stocks retreated, regional benchmarks surged. Japan’s Nikkei 225 climbed 2.5 percent to close above 50,000 for the first time, boosted by optimism over trade talks and strong backing for new Prime Minister Sanae Takaichi’s market-friendly agenda. South Korea’s Kospi also rallied 2.6 percent to a record high, while Hong Kong’s Hang Seng rose 1.1 percent and Shanghai Composite gained 1.2 percent.

Asia’s rally reflected growing optimism that US President Donald Trump and Chinese President Xi Jinping would finalize a new trade framework at their meeting in South Korea later this week. The deal reportedly covers issues from export controls and fentanyl trade to agricultural tariffs.

Reinforcing market optimism, the People’s Bank of China (PBoC) injected CNY 900 billion in liquidity through its one-year Medium-Term Lending Facility (MLF) on October 27, while China’s industrial profits rose 3.2 percent year-on-year to 5.37 trillion chinese yuan in the first nine months of 2025.

While on Wall Street, the index closed at fresh record highs on Friday after US inflation data came in slightly better than expected. The S&P 500 gained 0.8 percent to 6,791.69, the Dow Jones Industrial Average rose 1 percent to 47,207.12, and the Nasdaq Composite climbed 1.1 percent to 23,204.87.

The softer inflation reading boosted optimism that the Federal Reserve could maintain its pace of rate cuts, offering support to a cooling US labor market while easing pressure on household spending.