Jakarta. Jakarta stocks fell 50 points, or 0.83%, to 6,071 at Wednesday’s close, as lingering global uncertainty over interest rates, bond yields and geopolitical tensions offset support from the passage of the 2027 state budget and easing oil prices.

A total of 325 stocks rose, 371 declined and 267 were unchanged. Trading value reached Rp 13.4 trillion ($748.68 million).

Pilarmas Investindo Sekuritas said the Jakarta Composite Index (JCI) continued to receive support from positive domestic and international developments, but persistent global uncertainties limited its gains.

Domestically, the House of Representatives passed the 2027 state budget into law on Tuesday. The budget targets 6% economic growth while keeping the fiscal deficit at 2.4% of gross domestic product (GDP).

Pilarmas said the budget's approval provided a clearer picture of the government's fiscal policy direction, offering a positive signal for financial markets amid global uncertainty.

“Nevertheless, several pressures are still preventing the JCI from gaining strong momentum. The market continues to monitor global interest rate developments, US Treasury yields, the rupiah exchange rate, as well as geopolitical dynamics and commodity prices,” Pilarmas said in its research report on Wednesday.

The brokerage also pointed to pressure from the US Federal Reserve's monetary policy on Bank Indonesia and the risk of foreign capital outflows if conditions in global financial markets deteriorate.

External sentiment was mixed but generally supportive across Asia, with regional stocks mostly rising as oil price pressures eased. Concerns over supply began to subside after some of Saudi Arabia's East-West oil pipeline capacity was restored and the United States took steps to release emergency oil reserves.

“Easing oil prices are a positive signal for markets because they can reduce inflationary pressures and concerns over the monetary policy outlook,” Pilarmas said.

China also provided support after its manufacturing activity returned to expansion in September. Data from the National Bureau of Statistics showed the manufacturing purchasing managers' index (PMI) rose to 50.1 from 49.8 in August. A reading above 50 indicates expansion, marking a return to growth after two consecutive months of contraction.

China's non-manufacturing PMI, which measures activity in the services and construction sectors, also increased to 50.2 from 50.0 in August.

Pilarmas said the improvement in China's manufacturing and services activity provided an additional catalyst for Asian equities, given the country's role as a major driver of regional economic growth.

Across Asia, Japan's benchmark Nikkei 225 jumped 1.9%, while South Korea's Kospi reversed earlier gains to fall 0.5%. Hong Kong's Hang Seng Index rose 0.4%, and the Shanghai Composite Index gained 0.3%.

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