Jakarta. Indonesian stocks tumbled on Friday as global market sentiment soured amid renewed fears over US bank loan defaults and escalating trade tensions between Washington and Beijing.

The benchmark Jakarta Composite Index (JCI) closed sharply lower by 209 points, or 2.57 percent, at 7,915, after moving between 7,854 and 8,140 throughout the session.

Trading volume reached 39.4 billion shares with a turnover of Rp 27.6 trillion ($1.7 billion) across 2.7 million transactions. A total of 116 stocks advanced, while 598 declined, and 94 were unchanged.

According to Pilarmas Investindo Sekuritas, the JCI’s decline tracked losses across Asian and US markets, weighed by concerns over rising credit risks and trade friction. “Markets are increasingly wary of broader credit risks, following reports of bad loans from two US banks,” Pilarmas said in a Friday note.

The brokerage added that tensions between the US and China continued to pressure sentiment after China accused Washington of spreading panic over rare earth export controls and rejected calls to lift export restrictions.

“China reportedly dismissed US requests to remove curbs on rare earth mineral exports, accusing the US of fearmongering,” Pilarmas said.

US President Donald Trump and Chinese President Xi Jinping are expected to meet in South Korea later this month in a bid to ease tensions. Investors are also eyeing China’s upcoming Fourth Plenary Session, where the country is set to unveil its 2026–2030 Five-Year Plan.

Domestically, Pilarmas said foreign direct investment (FDI) in Indonesia reached Rp 212 trillion ($12.78 billion) in the third quarter of 2025, down 8.9 percent year-on-year, citing global geopolitical instability as a key factor behind the slowdown.

Across Asia, major indexes also ended in the red. Japan’s Nikkei 225 dropped 1.4 percent to 47,582.15, weighed by political uncertainty following Sanae Takaichi’s election as head of the ruling Liberal Democratic Party. Hong Kong’s Hang Seng index slumped 2.2 percent to 25,324.56, while the Shanghai Composite slid 1.9 percent to 3,840.98.

Meanwhile, South Korea’s Kospi ended nearly flat at 3,748.89, supported by optimism over trade talks with the US Data showed the country’s unemployment rate eased slightly to 2.5 percent in September.

On Wall Street, all three major US indexes closed lower overnight. The S&P 500 slipped 0.6 percent to 6,629.07, the Dow Jones Industrial Average lost 0.7 percent to 45,952.24, and the Nasdaq Composite fell 0.5 percent to 22,562.54.