Jakarta. After a week-long Eid holiday, Indonesia’s benchmark stock index plunged sharply on Tuesday, prompting a temporary trading suspension as investors reacted to US tariffs on Indonesian goods and escalating trade tensions between the US and China.

The Jakarta Composite Index (JCI) nosedived 9.19 percent in early trading, falling to 5,914.29 and triggering an automatic 30-minute trading halt under Indonesia Stock Exchange (IDX) circuit breaker rules. By the end of the day, the index recovered slightly but was still down 7.9 percent, or 514 points, to 5,996.

Market breadth was overwhelmingly negative, with 627 stocks declining and only 30 posting gains. Trading volume reached 22.6 billion shares across 1.4 million transactions, with a total turnover at Rp 20 trillion ($1.26 billion).

All 11 sectoral indices were deep in the red. The basic materials sector saw the steepest decline, plunging 10.54 percent, followed closely by technology, which dropped 10.23 percent. Consumer, infrastructure, energy, and transportation stocks each lost more than 8 percent. Indonesia’s blue-chip LQ45 index was down 9.09 percent, while the Sharia-based Jakarta Islamic Index slid 8.43 percent.

The sharp correction came as most major Asian bourses rallied. Japan’s Nikkei 225 jumped 6.03 percent to close at 33,012.6, fueled by bargain hunting and a broader global rebound. The Hang Seng index in Hong Kong added 1.51 percent after its worst day since the 1997 Asian financial crisis, and China’s SSE Composite rose 1.58 percent on state-driven share purchases. Meanwhile, Singapore’s Straits Times Index slipped 1.4 percent.

Globally, risk sentiment rebounded modestly after a bruising Monday on Wall Street, when President Donald Trump threatened further tariff hikes—potentially raising levies on Chinese imports by 50 percent. Early Tuesday, China’s Commerce Ministry vowed to “fight to the end,” adding uncertainty to already volatile markets.

European stocks followed Asia’s lead, with Germany’s DAX up 0.9 percent, France’s CAC 40 gaining 1.3 percent, and London’s FTSE 100 rising 1.3 percent. Futures for the S&P 500 and Dow Jones were up 1.5 percent and 1.9 percent, respectively, signaling possible recovery ahead in US markets.

However, Southeast Asian markets suffered the most. Alongside Jakarta, Thailand’s SET Index tumbled 4.2 percent. Taiwan’s Taiex fell 4 percent as chip giant TSMC dropped 3.8 percent. Indonesia’s rupiah also weakened against the dollar, intensifying investor concerns over capital outflows.

Analysts warn that higher US tariffs—particularly the 32 percent duty recently imposed on Indonesian goods—could undermine the country’s export-driven economy. The risk of capital flight and a weaker currency is especially acute in Indonesia and other ASEAN nations with