Jakarta. Indonesia stocks opened on a strong rebound Wednesday, with the Jakarta Composite Index (JCI) jumping more than 2% as investors snapped up bargains after the previous session’s losses, even as geopolitical risks and currency pressure linger.

The benchmark index climbed to 7,162 at the open, moving within a range of 7,118 to 7,166. Data from RTI showed early trading volume reached 1.6 billion shares, with turnover at Rp 1 trillion ($58.8 million) across more than 80,000 transactions. Gainers outpaced decliners 387 to 95, while 161 stocks were unchanged.

Global sentiment offered cautious support. US equities edged higher in hesitant trading on Monday ahead of a deadline set by Donald Trump over potential military action targeting Iranian power infrastructure. The S&P 500 rose 0.4%, marking its first weekly gain in six weeks, while the Dow Jones Industrial Average added 165 points, or 0.4%, and the Nasdaq Composite climbed 0.5%.

Oil prices also advanced after volatile trading, reflecting uncertainty over the ongoing conflict involving Iran and its implications for global energy supply. Tehran rejected a ceasefire proposal, signaling a harder stance.

“We won’t merely accept a ceasefire,” Mojtaba Ferdousi Pour, head of the Iranian diplomatic mission in Cairo, told The Associated Press. “We only accept an end of the war with guarantees that we won’t be attacked again.”

Fighting continued, including an Israeli strike on an Iranian petrochemical facility, while attention remained on Washington’s deadline tied to the strategic Strait of Hormuz, a key artery through which roughly one-fifth of global oil flows.

“The entire country can be taken out in one night, and that night might be tomorrow night,” Trump said.

However, sentiment improved slightly after the market close, as Trump postponed the planned military strike by two weeks following mediation by Pakistan, on the condition that Iran fully reopens the Strait of Hormuz.

Domestically, FTSE Russell maintained Indonesia’s classification as a Secondary Emerging Market, while continuing to assess reforms in transparency, free float, and governance. Authorities have rolled out measures including enhanced ownership disclosure, broader investor classification, and tighter market surveillance to address past concerns.

The final decision on Indonesia’s status will be announced ahead of the June 2026 index review, factoring in reform progress and market feedback. There are currently no plans to place Indonesia on the Watch List, according to Kiwoom Sekuritas Indonesia.

Markets remain in a wait-and-see mode ahead of the review, which could influence future foreign capital flows.

On currency, pressure persists.

“Rupiah exchange rate position is the worst since the 1998 monetary crisis, having touched 17,105/USD, thus contributing gloomy sentiment to market movements even though regional sentiment and global geopolitical tensions have eased slightly,” Kiwoom added.

Across Asia as of 8:59 a.m. Jakarta time, Japan’s Nikkei surged 4.95% to 56,081, while South Korea’s Kospi jumped 5.85% to 5,816. China’s Shanghai Composite gained 1.35% to 3,942, while Hong Kong markets were closed for a national holiday.

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