Jakarta. Indonesian stocks opened higher on Tuesday, gaining 29 points or 0.59% to 5,126 as easing inflation and stronger manufacturing activity supported domestic sentiment, although rising government bond yields and global market jitters continued to weigh on investor confidence.

The Jakarta Composite Index (JCI) moved within a range of 5,096 to 5,143 during early trading.

RTI data showed that 484.26 million shares had changed hands in early trading, with a total transaction value of Rp 184.19 billion ($10.15 million) across 32,810 transactions. A total of 306 stocks advanced, 94 declined, and 198 remained unchanged.

Phintraco Sekuritas said October inflation stood at 0.22% month-to-month (MoM) and 3.23% year-on-year (YoY), slightly easing from 0.3% MoM and 3.28% YoY in September 2026.

Manufacturing activity also strengthened, with the S&P Global Manufacturing Purchasing Managers' Index (PMI) rising to 54 in October from 52.4 in September, exceeding the market consensus of 51.9.

Indonesia's trade balance also recorded a $3.36 billion surplus in September, down from $3.55 billion in August but above the market consensus of $1.9 billion.

Phintraco Sekuritas said the indicators suggested that domestic economic fundamentals remained relatively resilient, supported by stronger production activity and moderating inflationary pressures.

"However, improvements in domestic indicators have yet to ease pressure on the government bond market," the brokerage said.

The 10-year government bond yield climbed to around 7.75%, its highest level since 2020, driven by rising global yields, pressure on the rupiah, foreign capital outflows and an increase in Indonesia's risk premium, Phintraco Sekuritas said.

"This suggests that investors are still demanding higher yields to compensate for risks, potentially prolonging pressure on bond prices and government financing costs in the short term," it added.

Meanwhile, Kiwoom Sekuritas Indonesia said global market sentiment remained cautious amid growing concerns over the sustainability of artificial intelligence (AI) investment.

Plans by major AI hyperscalers to raise additional debt, alongside updates on Anthropic's financial condition, have prompted investors to reassess the industry's funding requirements and profitability prospects.

"On the other hand, investment rotation is beginning to emerge from technology stocks toward the consumer discretionary, materials and financial sectors, which have recorded relatively better performance," Kiwoom said in a report on Tuesday.

On Wall Street, the S&P 500 fell 0.5% on Monday, while the Nasdaq Composite weakened 1.1%. The Dow Jones Industrial Average, however, gained 0.4%.

In regional markets, as of 9:34 a.m. Jakarta time on Tuesday, Japan's Nikkei 225 slipped 0.33%, while South Korea's Kospi dropped 2.27%.

Hong Kong's Hang Seng Index advanced 0.46%, while the Shanghai Composite Index gained 0.59%.

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