Jakarta. Indonesian stocks fell sharply on Thursday as rising US Treasury yields, a stronger dollar and foreign fund outflows intensified pressure on the market amid broader global uncertainty.

Jakarta Composite Index fell 76 points, or 1.2%, to 6,298, according to Indonesia Stock Exchange data. The index remained in negative territory throughout the session, moving between 6,287 and 6,368.

Trading volume reached 29.3 billion shares, with turnover totaling Rp 11.23 trillion ($626.36 million) across more than 1.6 million transactions. A total of 188 stocks advanced, 462 declined and 144 were unchanged.

Pilarmas said global market sentiment remained a key factor weighing on the Jakarta Composite Index as investors grew more cautious over the uncertain outlook for US interest rates, a stronger dollar and rising bond yields.

“The situation was exacerbated by rising geopolitical tensions in the Middle East. The US-Iran conflict has once again drawn market attention as it could disrupt energy supplies and push up global oil prices,” Pilarmas wrote in its research note on Thursday.

Higher oil prices could add to global inflationary pressures, Pilarmas said. If inflation remains elevated, central banks would have less room to cut interest rates, potentially prompting investors to reduce their exposure to riskier assets such as stocks.

Beyond the Middle East conflict, investors are also watching a planned meeting between US President Donald Trump and Chinese President Xi Jinping in Washington.

The two leaders are expected to discuss the countries’ trade relationship, particularly the extension of their trade truce. US Treasury Secretary Scott Bessent said the two countries had agreed to extend the trade truce for another two months through Jan. 10.

China, however, has yet to publicly confirm the agreement’s expiration date. The Trump-Xi meeting is also expected to cover strategic issues including artificial intelligence, Iran, Taiwan and the two countries’ economic relationship.

Domestically, pressure on the rupiah and foreign fund flows also weighed on sentiment.

“The strengthening US dollar amid rising bond yields is increasing pressure on emerging-market currencies, including the rupiah,” Pilarmas said.

Bank Indonesia kept its benchmark interest rate unchanged in September to maintain rupiah stability while supporting economic growth. However, continued volatility in external markets has left domestic assets vulnerable to shifts in global sentiment.

Pilarmas also pointed to slowing economic growth and domestic consumption as concerns for investors. The combination of these factors has made investors more selective and fueled selling pressure in several stocks.

Across Asia, Japan’s benchmark Nikkei 225 gained 0.8%, with some chipmakers benefiting from renewed investor interest in artificial intelligence.

Hong Kong’s Hang Seng Index fell 0.3%, while the Shanghai Composite declined 1.2%. Trading was closed in South Korea for the Chuseok autumn harvest holiday.

Add as a preferred source on Google +