Jakarta. Indonesian stocks finished nearly flat on Monday after swinging between gains and losses, as investors balanced a $450 million trade deficit, easing inflation and a rebound in manufacturing against global uncertainties. The Jakarta Composite Index (JCI) slipped 1 point, or 0.03%, to 6,234.

The index moved between 6,212 and 6,273 during the session. Trading volume reached 38.2 billion shares, with turnover totaling Rp 14.18 trillion ($789.06 million) across more than 2.3 million transactions. Gainers outnumbered losers at 292 to 348, while 150 stocks were unchanged.

Pilarmas Investindo Sekuritas said Indonesia's latest economic indicators sent mixed signals. The country's manufacturing Purchasing Managers' Index (PMI) rose to 50.2 in July from 46.9 in June, returning the sector to expansion territory.

"Even so, market participants remain cautious about slowing growth due to high raw material prices, weakening exports, and businesses' cautious stance," Pilarmas wrote in a research note.

The brokerage also noted that Statistics Indonesia (BPS) reported a monthly deflation of 0.14% in July. Annual inflation stood at 2.88%, below the market expectation of 3.2% but still within Bank Indonesia's target range of 1.5-3.5%.

Indonesia's trade balance also posted a $450 million deficit, adding to negative sentiment in the market, Pilarmas said.

The brokerage said investor sentiment was also pressured by persistent geopolitical uncertainty in the Middle East. Although US President Donald Trump canceled plans for military strikes against Iran and reopened the door for negotiations, markets remain skeptical that a lasting peace agreement can be reached.

"Trump also provided no certainty on the timeline for negotiations with Iran, leaving concerns over regional stability and shipping routes through the Strait of Hormuz hanging over the market," Pilarmas wrote.

Additional pressure came from China, where manufacturing activity slowed. A private survey showed the manufacturing PMI eased to 50.9 in July from 51.7 in June, below market expectations.

Official data painted a weaker picture, with the manufacturing PMI falling to 49.2, marking the sector's first contraction since February. Still, the People's Bank of China (PBoC) reiterated that it would maintain an accommodative monetary policy to support economic growth.

Pilarmas added that global technology stocks, particularly semiconductor shares, also remained under pressure as investors questioned the sustainability of the artificial intelligence (AI) investment boom.

Across Asia, Japan's Nikkei 225 fell 0.9% to 63,754, while South Korea's Kospi dropped 5.1% to 6,257 after surging a record 17.9% on Friday following even steeper losses earlier last week.

Hong Kong's Hang Seng Index rose 0.5% to 26,009, while China's Shanghai Composite Index slipped 0.6% to 3,809.

Wall Street ended July on a stronger note on Friday. The S&P 500 gained 0.7%, the Dow Jones Industrial Average rose 0.5%, and the Nasdaq Composite advanced 1%.

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