Jakarta. Indonesian stocks rose more than 1% on Friday after Bank Indonesia's foreign exchange reserves remained at a level deemed sufficient to safeguard external stability, helping offset investor concerns over US interest rates and Middle East tensions.

Jakarta Composite Index (JCI) added 66 points, or 1.04%, to close at 6,409 after trading between 6,347 and 6,409. Trading volume reached 37.7 billion shares worth Rp 16.2 trillion ($909.52 million) across more than 2.2 million transactions. Gainers outnumbered losers 355 to 235, while 203 stocks were unchanged.

Pilarmas Investindo Sekuritas said the market was supported by Indonesia's solid macroeconomic fundamentals despite rising global uncertainty.

One positive catalyst came from Bank Indonesia's latest foreign exchange reserve data. Reserves stood at $145.3 billion at the end of July, slightly down from $145.6 billion at the end of June.

"Nevertheless, the level remains more than sufficient to safeguard external stability," Pilarmas wrote in a research note on Friday.

The reserves are equivalent to 5.5 months of imports, or 5.3 months of imports and government external debt repayments, well above the international adequacy standard of around three months of imports.

According to Pilarmas, the reserve position reflects Indonesia's strong economic fundamentals and helps maintain investor confidence in the domestic financial market.

Still, investors continued to monitor geopolitical developments in the Middle East after reports emerged of restrictions on US and Israeli vessels passing through the Strait of Hormuz, driving oil prices higher and renewing concerns over global inflation.

"The situation has shifted investors' focus to the upcoming US Nonfarm Payrolls report, which is expected to shape market expectations for the Federal Reserve's next interest rate decision," Pilarmas said.

 The brokerage added that Federal Reserve Chairman Kevin Warsh had indicated the central bank was prepared to raise interest rates in September if inflationary pressures persisted in the coming weeks.

At home, investors are also awaiting the government's announcement of Bank Indonesia's permanent governor.

"Market participants expect the selected candidate to maintain rupiah stability, keep inflation under control, and preserve the credibility of monetary policy amid an increasingly dynamic global economy," Pilarmas said.

Across Asia, Japan's Nikkei 225 slipped 0.1%, while South Korea's Kospi fell 0.6%. Hong Kong's Hang Seng gained 0.5%.

China's Shanghai Composite advanced 1% after customs data showed exports remained robust despite moderating growth. Exports rose 23.9% year-on-year in July, while imports increased 27.5%, easing from June's 36% growth. The figures pointed to sustained overseas demand for electronics and other high-tech products, although China's trade surplus narrowed from the previous month.

On Wall Street overnight, the S&P 500 fell 0.2%, the Dow Jones Industrial Average lost 0.9%, and the Nasdaq Composite edged down 0.1%.

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