Jakarta. Indonesian stocks surged 2.25% on Thursday, gaining 110 points to close at 5,030, as easing geopolitical concerns and stronger domestic economic growth lifted investor sentiment, offsetting losses in regional technology-heavy markets.

Jakarta Composite Index (JCI) traded between 4,995 and 5,072 during the session. Trading volume reached 22.9 billion shares, with a total transaction value of Rp 9.98 trillion ($552.35 million) across more than 1.32 million transactions. A total of 440 stocks advanced, 178 declined and 99 remained unchanged.

Pilarmas Investindo Sekuritas attributed the gains partly to improving global sentiment following the US midterm election results, easing concerns over a potential conflict between the United States and Iran, and Indonesia's solid economic growth.

Pilarmas said the Democratic Party's victory over the Republican Party in the US midterm elections had helped improve market sentiment.

"The results have strengthened hopes that the US-Iran conflict could come to an end, as it has been one of the main sources of global uncertainty," Pilarmas wrote in its research note on Thursday.

A Democratic-controlled Congress could potentially limit military funding for operations in the Middle East. Senate Minority Leader Chuck Schumer has also pledged to push for an end to the conflict.

US President Donald Trump acknowledged that the Republican Party's losses were linked to the war and high gasoline prices. He also indicated that there were no immediate plans to escalate attacks on Iran.

According to Pilarmas, hopes of easing tensions have also weighed on oil prices, potentially reducing inflationary pressures and concerns over further interest rate hikes in the near term.

Domestically, investors also monitored new sanctions announced by capital market regulators over alleged stock market violations. The measures form part of broader market reforms following MSCI's warning of a potential downgrade of Indonesia's equity market classification.

"Domestic sentiment was also supported by Indonesia's economic growth of 5.47% year-on-year in the third quarter of 2026, up from 5.29% in the previous quarter," Pilarmas said.

The brokerage said stronger economic growth could help mitigate the risk of foreign capital outflows and support rupiah stability amid uncertainty over global liquidity. Economic expansion also gives the government room to continue strategic spending while keeping the budget deficit below 3% of gross domestic product (GDP).

Asian markets delivered mixed performances on Thursday as gains following the US midterm elections were partly offset by heavy selling in artificial intelligence-related stocks.

Although US stocks have historically tended to rise following midterm elections regardless of the outcome, technology shares have come under pressure as investors assess the potential impact of a Democratic-led Congress on the AI boom starting in January.

South Korea's Kospi tumbled 5.3% after swinging between buying and selling pressure amid heightened volatility in AI-related stocks.

Japan's Nikkei 225 fell 1.8%, while markets with less exposure to the AI industry mostly advanced. Hong Kong's Hang Seng Index jumped 3.7%, while the Shanghai Composite Index edged up 0.1%.

On Wednesday, Wall Street rallied, with the S&P 500 gaining 1.6%. The Dow Jones Industrial Average surged more than 1,500 points, while the Nasdaq Composite rose 1.4%.

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