Jakarta. Indonesia's benchmark stock index erased sharp intraday losses to end higher on Friday, as renewed hopes for US-Iran peace talks and a resilient outlook for Indonesia's economy helped restore investor confidence late in the session.

Jakarta Composite Index (JCI) gained 11 points, or 0.20%, to close at 5,924 after swinging between 5,887 and 5,949 during the day's trading. The index briefly slipped into negative territory around 2 p.m. local time before rebounding near the close.

Trading volume reached 18.2 billion shares, with turnover totaling Rp 8.2 trillion ($453.88 million) across more than 1.9 million transactions. Advancing stocks outnumbered decliners, with 364 gainers against 241 losers, while 185 stocks were unchanged.

Pilarmas Investindo Sekuritas said the JCI's gains mirrored broader advances across Asian markets after reports emerged that the United States and Iran would continue peace negotiations.

According to the brokerage, optimism over diplomacy grew after US President Donald Trump signaled his willingness to keep talks with Iran alive, while Tehran was also reported to be open to negotiations aimed at easing tensions in the Middle East.

"The prospect of continued peace negotiations between the US and Iran has helped ease market concerns over disruptions to global energy supplies and inflationary pressures," Pilarmas wrote in a research note on Friday.

Domestic sentiment also remained supportive after the International Monetary Fund (IMF), in its July 2026 World Economic Outlook, maintained Indonesia's economic growth forecast at 5.0% for 2026 and 5.1% for 2027.

The projections were unchanged from the IMF's April 2026 report, underscoring Indonesia's economic resilience despite slowing global and regional growth.

"The steady growth outlook sends a positive signal to investors because it reflects the strength of Indonesia's economic fundamentals despite external challenges," Pilarmas said.

Across Asia, markets mostly finished higher on Friday, led by technology shares, while oil prices declined as investors continued to monitor developments surrounding the Iran conflict.

South Korea's Kospi jumped 2.5% to 7,475, recovering part of its losses earlier in the week. Shares of memory chipmaker SK Hynix slipped 0.3% in Seoul ahead of its Nasdaq debut later on Friday.

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