Jakarta. Indonesia’s stock market surged on Monday, joining a regional rally after US President Donald Trump signaled that his 100 percent import tariffs on Chinese goods will not be sustainable.

The remark eased fears of a prolonged trade war and ignited broad-based buying across Asian equities, with Indonesian banking stocks leading the charge.

The Jakarta Composite Index (JCI) skyrocketed 173.3 points, or 2.19 percent, to close at 8,088, moving between 7,937 and 8,117 throughout the session.

Trading volume reached 35 billion shares with a turnover of Rp 22.8 trillion ($1.3 billion) across 2.4 million transactions. A total of 510 stocks advanced, 183 declined, and 117 remained unchanged.

According to Pilarmas Investindo Sekuritas, investor sentiment improved after Trump’s comments signaled an easing in US-China trade tensions. “This shows early signs of a cooling trade dispute between the US and China,” Pilarmas noted in its research.

Further optimism came as US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng prepared for talks this week, ahead of a possible Trump-Xi meeting later this month.

From Beijing, fresh data showed China’s economy grew 4.8 percent year-on-year in the last quarter, its slowest pace in a year, amid continued weakness in property and consumer spending. Meanwhile, the Chinese Communist Party’s leadership convened a key meeting expected to outline the country’s five-year economic direction.

On the domestic front, investors are turning their focus to the upcoming Bank Indonesia Board of Governors Meeting on October 21–22. Pilarmas said the market anticipates the central bank will maintain a “pro-stability” stance, balancing currency stability and inflation control.

“BI continues to assess room for further rate cuts while safeguarding rupiah stability and supporting economic growth,” the firm added.

Banking stocks dominated Monday’s gainers, driving the index higher.

Bank Tabungan Negara (BBTN) led the sector with an 8.33 percent jump, followed by Bank Negara Indonesia (BBNI) which climbed 6.32 percent, and Bank Mandiri (BMRI) up 6.17 percent.

Bank Rakyat Indonesia (BBRI) gained 5.14 percent, Bank Central Asia (BBCA) advanced 5 percent, and Bank Syariah Indonesia (BRIS) added 4.76 percent.

Across Asia, stock markets rallied as easing trade tensions and Wall Street’s strong finish last week lifted confidence. Japan’s Nikkei 225 soared 2.9 percent to 48,970.40, marking a new record high, after the ruling Liberal Democrats secured a coalition deal backing Sanae Takaichi to become Japan’s first female prime minister.

Hong Kong’s Hang Seng rose 2.5 percent, Shanghai’s Composite Index added 0.7 percent, and South Korea’s Kospi gained 1.3 percent on optimism for a potential trade breakthrough. Australia’s S&P/ASX 200 edged up 0.2 percent.

On Wall Street, major US indices closed higher on Friday, with the S&P 500 up 0.5 percent to 6,664.01, the Dow Jones Industrial Average advancing 0.5 percent to 46,190.61, and the Nasdaq Composite climbing 0.5 percent to 22,679.97.

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