Jakarta. Jakarta stocks fell 0.33% on Friday as investors weighed global geopolitical tensions and monetary policy signals, alongside Indonesia’s budget deficit, which reached 0.93% of GDP as of August, remaining below the statutory 3% ceiling.

Trading volume reached 30.9 billion shares, with a total turnover of Rp 19 trillion ($1.07 billion) across more than 1.9 million transactions. A total of 204 stocks advanced, 442 declined and 144 were unchanged.

On the domestic front, Indonesia’s budget deficit reached Rp 240.1 trillion ($13.5 billion), or 0.93% of gross domestic product (GDP), as of the end of August, remaining below the statutory 3% ceiling.

At his first budgetary conference since taking office, Finance Minister Suahasil Nazara said the state budget remained on track, supported by a positive primary balance and a deficit within the legal limit.

“Our state budget’s performance remained robust by the end of August. We recorded a positive primary balance and kept the deficit within limits. So our state budget is relatively on track,” Suahasil told reporters in Jakarta on Friday.

Pilarmas Investindo Sekuritas said investors were monitoring several global developments, including the Middle East conflict, oil prices and the monetary policy outlook of the US Federal Reserve and the Bank of Japan (BOJ).

Oil prices remained a key market focus after Saudi Arabia took steps to resume oil flows through its East-West pipeline. The move eased concerns over inflationary pressures that had previously intensified due to disruptions in energy supplies.

Meanwhile, investors were still digesting the Fed’s 25-basis-point interest rate hike earlier this week.

“The increase has drawn attention because the Fed has left open the possibility of further tightening toward the end of the year to curb price pressures, which are still considered high,” Pilarmas wrote in its research note on Friday.

Pilarmas also highlighted developments in Japan, where the BOJ raised its benchmark interest rate by 25 basis points to 1.25%. Investors are now watching the central bank’s next policy moves amid mounting inflation and wage pressures.

Market participants are also awaiting US President Donald Trump’s planned meeting with Gulf leaders next week, which could open the door to diplomatic efforts to ease tensions in the Middle East, Pilarmas said.

Trump’s planned meeting with Chinese President Xi Jinping is another focus for investors.

“The meeting between the leaders of the world’s two largest economies is expected to create room for improving bilateral relations. However, uncertainty surrounding sanctions, tariffs and geopolitical conflicts continues to weigh on markets,” Pilarmas said.

Across Asia, regional markets closed higher. Japan’s Nikkei 225 gained 1.4%, while South Korea’s Kospi jumped 2.7%. Hong Kong’s Hang Seng Index edged up 0.6%, and Shanghai’s SSE Composite Index added 0.9%.

Add as a preferred source on Google +