Jakarta. Indonesia’s main stock gauge ended higher on Monday, lifted by upbeat sentiment across Asian markets following political developments in Japan and renewed expectations of the US interest rate cuts.

The benchmark Indonesia Stock Exchange index rose 21.6 points, or 0.27 percent, to close at 8,139 after moving in a tight range between 8,104 and 8,176 throughout the day.

More than 45.6 billion shares changed hands in 2.9 million transactions, with a total turnover of Rp 28.1 trillion ($1.7 billion). Market capitalization reached Rp 15,249.6 trillion ($919 billion). There were 260 gainers against 419 decliners, while 119 stocks were unchanged.

Energy company Chandra Daya Investasi (CDIA) led the gainers with a 15.6 percent jump, followed by GTS International (GTSI), which rose 14 percent. Coal miner Petrindo Jaya Kreasi (CUAN) advanced 11.3 percent, and fisheries firm Dharma Samudera Fishing (DSFI) gained 10.3 percent.

Brokerage company Pilarmas Investindo Sekuritas said the rise in Asian equities came amid concerns over a potential US government shutdown and growing expectations that the Federal Reserve may soon cut interest rates.

“The Fed faces a complex and challenging situation in determining its next policy direction, as inflationary pressures persist while labor market indicators show signs of weakening,” Pilarmas noted.

Fed Governor Phillip Jefferson earlier warned of heightened risks to both price stability and employment, while Dallas Fed President Lorie Logan said further policy moves could inadvertently reignite inflationary pressures despite a weakening labor market.

Asian markets largely ended in positive territory, with Japan’s Nikkei 225 surging 4.8 percent to 47,944.76 after the ruling Liberal Democratic Party elected Sanae Takaichi, a fiscal dove and ally of the late former Prime Minister Shinzo Abe, as its new leader. The move positions her to become Japan’s first female prime minister, a development seen as likely to sustain the country’s market-friendly policies.

However, Pilarmas warned that foreign selling pressure continues to weigh on the Indonesian market. Bank Indonesia reported a Rp 9.76 trillion foreign capital outflow in the first week of October, heightening the country’s investment risk premium amid global uncertainty.

“Concerns over domestic financial stability and external resilience remain as global markets face persistent volatility,” Pilarmas added

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