Jakarta. Jakarta Composite Index fell back into negative territory on Friday, pressured by lingering concerns over elevated oil prices and the prospect of US interest rates staying higher for longer.

The index fell 57 points, or 0.90%, to 6,241 at the close, reversing gains seen earlier in the session.

Trading volume reached 33.2 billion shares, with turnover at Rp 9.44 trillion ($527.12 million) across more than 1.6 million transactions. A total of 118 stocks rose, 558 fell and 117 were unchanged.

The decline tracked losses across most major Asian markets as investors remained focused on global risks, including elevated oil prices, US monetary policy and developments in US-China relations, Pilarmas Investindo Sekuritas said.

Japan’s Nikkei 225 gained 1.3% to 66,364, while Hong Kong’s Hang Seng fell 1.1%. Mainland Chinese and South Korean markets were closed for a holiday.

At home, oil prices remained a key concern because of their potential impact on Indonesia’s fiscal position, according to Pilarmas. Investors were also turning cautious ahead of the release of August trade data and September inflation figures next week.

“Investors are also increasing their vigilance ahead of the release of August trade data and September inflation next week,” Pilarmas said.

Indonesia’s annual inflation accelerated to 3.19% in August, mainly driven by higher food prices linked to the impact of El Niño.

Markets are also watching a planned meeting between US President Donald Trump and Chinese President Xi Jinping in Washington, with trade and artificial intelligence expected to feature prominently.

“Trade issues are one of the main concerns, while artificial intelligence (AI) is also a topic of discussion at the meeting,” Pilarmas wrote in its research note on Friday.

Xi has also urged the US to explicitly oppose Taiwan’s independence, Pilarmas said. Developments in US-China relations remain a focus for investors given their potential impact on global trade and economic activity.

Oil prices remained another source of pressure for markets. Reports that the US and Iran are considering a phased agreement that could potentially reopen the Strait of Hormuz and lift the US blockade of Iranian ports have offered some hope of easing supply concerns, but geopolitical uncertainty continues to weigh on the oil market.

Tensions in the Middle East have also intensified after Yemen’s Iran-aligned Houthi group launched missiles toward several cities in Saudi Arabia, including Yanbu and Taif.

“High oil prices could push global inflation higher again by raising energy, transportation and production costs. This could ultimately narrow central banks’ room to ease monetary policy,” Pilarmas said.

Meanwhile, expectations that the Federal Reserve could keep interest rates elevated for longer added to market pressure.

The concern followed a jump in US government bond yields, as investors assessed whether the Fed still has more work to do to bring inflation under control and could potentially raise rates again if price pressures fail to ease.

New York Fed President John Williams said the central bank still has significant work to do to bring inflation under control. Philadelphia Fed President Anna Paulson, meanwhile, said some moderate additional policy tightening may still be necessary.

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