Jakarta. Indonesian stocks climbed 1.12% to close at 5,387 on Thursday, gaining 59 points as investors weighed President Prabowo Subianto’s remarks on a potential change in the country’s stock market classification by global index provider MSCI and Bank Indonesia’s latest monetary policy decision.

Jakarta Composite Index ranged between 5,185 and 5,422 during the session. Trading volume reached 37.37 billion shares, with turnover of Rp 15.99 trillion ($885.31 million) across more than 2.1 million transactions. A total of 467 stocks advanced, 204 declined and 123 remained unchanged.

Pilarmas Investindo Sekuritas said domestic stocks were influenced partly by investor responses to Prabowo’s statements regarding MSCI’s plan to change Indonesia’s stock market classification.

Positive sentiment also came from Bank Indonesia’s decision to maintain its benchmark BI-Rate at 5.75%. However, the central bank raised its deposit facility rate to 5% to maintain the appeal of rupiah-denominated assets, attract capital inflows and stabilize the currency.

“The policy is also aimed at supporting economic growth and keeping inflation within the target range of 1.5% to 3.5%,” Pilarmas wrote in its research note on Thursday.

In contrast, Asian stock markets came under pressure as investors grew concerned about the technology sector’s fundamentals and the scale of investment in artificial intelligence (AI). Investors questioned whether heavy spending on AI development and supporting infrastructure would generate sufficient revenue to justify the costs.

“Concerns have also emerged because some AI infrastructure investments are financed through debt, while valuations and the outlook for future investments remain areas of investor concern,” Pilarmas added.

Pressure in energy markets further fueled uncertainty. Global oil prices rose after a drone attack on Saudi Aramco’s Shaybah oil field killed two people, raising concerns over potential oil supply disruptions and renewed inflationary pressures.

The United States also ordered some personnel and their families to leave the US Embassy in Saudi Arabia. Meanwhile, Ukraine stepped up attacks on Russia’s strategic oil infrastructure this week.

In the United States, market participants broadly expect the Federal Reserve to keep interest rates unchanged next week. Kevin Warsh’s remarks on the previous Friday have not altered market expectations for the decision.

“Nevertheless, the possibility of an interest rate hike in December remains a concern, particularly if inflationary pressures from rising energy prices persist,” Pilarmas said.

Regional markets also posted steep losses on Thursday. Japan’s Nikkei fell 2.65%, South Korea’s Kospi dropped 3.5%, Hong Kong’s Hang Seng Index shed 3%, and the Shanghai Composite Index declined 1.5%.

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