Jakarta. Indonesia's benchmark stock index slid more than 1% on Monday as investors dumped equities amid renewed geopolitical tensions in the Middle East and remained cautious ahead of key domestic economic data releases later this week.

The Jakarta Composite Index (JCI) fell 75 points, or 1.28%, to close at 5,820 after swinging between 5,800 and 5,942 during the session. Trading volume reached 14.48 billion shares with a turnover of Rp 8.7 trillion ($487.5 million) across more than 1.2 million transactions. Decliners overwhelmed gainers, with 449 stocks falling against 214 advancing, while 149 were unchanged.

Pilarmas Investindo Sekuritas said the sell-off reflected mounting global uncertainty following renewed tensions between the United States and Iran, compounded by investors' wait-and-see stance toward domestic developments.

Asian markets traded mixed as investors reassessed geopolitical risks in the Middle East after the US and Iran exchanged attacks over the weekend.

"The situation has raised fresh concerns over regional stability and global energy supplies," Pilarmas wrote in a research note on Monday.

The brokerage said tensions escalated after the US struck several Iranian military facilities in response to attacks on shipping routes in the Strait of Hormuz. The situation worsened after US President Donald Trump threatened tougher action against Iran.

Iran, in turn, reportedly launched missile and drone attacks on Bahrain and Kuwait. Although both sides were said to have agreed to refrain from further military action ahead of peace talks scheduled in Doha, Qatar, Pilarmas noted that investors remained unconvinced.

"The market remains skeptical about the success of the negotiations, leaving uncertainty hanging over global financial markets," the brokerage said.

Domestically, Pilarmas said investor caution was also driven by continued scrutiny of the government's policy direction, capital market transparency, and the lack of a consistent return of foreign fund inflows into Indonesian equities.

Investors are also awaiting the release of Indonesia's inflation and trade balance data later this week. "Both indicators are expected to provide a clearer picture of domestic economic conditions and influence market direction in the short term," Pilarmas said.

Across the region, Asian markets ended mixed after Wall Street steadied last week with only modest losses. Japanese and South Korean shares recovered most of their early declines as investors returned to technology stocks despite lingering concerns over lofty artificial intelligence valuations.

South Korea's Kospi closed 0.2% lower at 8,394 after paring steeper losses earlier in the session. The decline came despite Seoul unveiling plans to invest more than $500 billion in a semiconductor manufacturing hub in the country's southwestern region. Samsung Electronics dropped 4.8%, while memory chipmaker SK Hynix fell 1.7%.

Japan's Nikkei 225 edged up 0.2% to 69,468. Hong Kong's Hang Seng rose 1.8% to 23,088.51, the Shanghai Composite gained 1.2% to 4,073.90, and Australia's S&P/ASX 200 added 0.7% to 8,823.

On Friday, Wall Street finished mixed as concerns over AI-related valuations persisted. The S&P 500 slipped less than 0.1% to 7,354, the Nasdaq Composite fell 0.2% to 25,297, and the Dow Jones Industrial Average eased 0.1% to 51,876.

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