Jakarta. Indonesian stocks rallied 1.36% on Monday, gaining 82 points to 6,118, as weaker-than-expected US jobs data lifted hopes that the Federal Reserve will keep interest rates unchanged this month despite pressure from a weaker rupiah, elevated US bond yields and high oil prices.

The Jakarta Composite Index ranged between 6,019 and 6,119 during the session. Trading volume reached more than 40.97 billion shares, with turnover of Rp 9.97 trillion ($556.6 million) across more than 1.64 million transactions. A total of 526 stocks advanced, 153 declined and 114 were unchanged.

Pilarmas Investindo Sekuritas said the rupiah's weakness, still-high US Treasury yields and elevated global oil prices remained key factors limiting the market's gains.

“Currency movements remain a concern for investors because they can heighten worries over Indonesia's external vulnerability, particularly while US bond yields remain at high levels,” Pilarmas wrote in a research note on Monday.

The 10-year US Treasury yield has eased from its recent high to around 5.25%, while the 30-year yield has fallen toward 5.6%. However, Pilarmas said both remained elevated enough to encourage caution among investors when accumulating riskier assets such as stocks.

Oil prices also remained a concern as they could add to inflationary pressures, particularly as geopolitical tensions in the Middle East persist.

The inflation risk is especially important because it could limit room for monetary easing. Indonesia's annual inflation rose to 3.28% in September 2026, approaching Bank Indonesia's upper target of 3.5%.

“These conditions have made investors assess Bank Indonesia's monetary policy space amid exchange-rate pressures and external sentiment. Although Indonesia recorded a trade surplus in August 2026, concerns over external vulnerability continue to weigh on the stock market,” Pilarmas said.

Still, Asian markets received a boost from weaker-than-expected US employment data. The US economy added only 29,000 jobs in September, well below the market expectation of 90,000. The unemployment rate rose to 4.2%, while annual wage growth unexpectedly slowed to 3%.

The data reduced pressure on the Federal Reserve to tighten monetary policy further and strengthened expectations that it could leave interest rates unchanged at its meeting this month.

“This certainly reduces pressure on the Federal Reserve to raise interest rates further, increasing the possibility that the Fed will keep its policy unchanged this month,” Pilarmas said.

Pilarmas, however, cautioned investors to continue watching US Treasury yields and global oil prices, which could keep inflationary pressures elevated and fuel market volatility.

In Asia, Tokyo's Nikkei 225 gained 2.4%, while Hong Kong's Hang Seng rose 0.3%. Trading was closed in Shanghai and South Korea for national holidays.

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