Jakarta. Indonesian stocks reversed early gains on Thursday, slipping into negative territory after opening at 6,688 as investors weighed cautious global sentiment ahead of key US inflation data.

Jakarta Composite Index (JCI) moved between 6,661 and 6,712 during the session. Trading volume reached 9.7 billion shares, with turnover of Rp 5.6 trillion ($319.66 million) across more than 575,000 transactions.

A total of 196 stocks gained, 318 declined and 213 were unchanged.

Phintraco Sekuritas said domestic consumer confidence improved in August, with Indonesia's Consumer Confidence Index (CCI) rising to 118.5 from 116.8 in July. The increase marked the first monthly gain in four months.

The improvement was supported by stronger consumer assessments of current economic conditions and higher expectations for the months ahead. The Current Economic Conditions Index rose to 109.4 in August from 107.9 in July, while the Consumer Expectations Index climbed to 127.6 from 125.7.

Indonesia's auto market also showed stronger activity in August. Car sales rose 32.4% year-on-year (yoy) to 81,756 units, the highest level in six months, although growth slowed slightly from 33.3% yoy in July. Phintraco attributed the increase partly to the Gaikindo Indonesia International Auto Show (GIIAS) 2026, held from July 29 to Aug. 9, which boosted sales in both July and August.

Motorcycle sales, meanwhile, grew 3.18% yoy to 596,461 units in August, slowing from 8.3% yoy growth in July amid higher inflation.

Phintraco said Indonesia's retail sales data was scheduled for release Thursday, with sales expected to contract 3.3% yoy in July after declining 3% yoy in June.

Kiwoom Sekuritas Indonesia said the government is targeting a government debt-to-GDP ratio of 40.31%-40.64% in 2027 as one of its performance indicators for financing management and sovereign risk.

The government is also targeting a 100% success index for deepening the domestic government bond market while continuing to expand the retail government bond investor base, which has reached around 1.081 million investors.

Retail government bond issuance is targeted at Rp 160 trillion-Rp 170 trillion in 2026, up from Rp 152 trillion in 2025.

Globally, Kiwoom said market sentiment remained negative ahead of US inflation data, which will be a key reference for the Federal Reserve's policy direction.

“The market estimates the chance of a 25-basis-point rate cut at the September 16 meeting still stands at around 60%. Investors will watch the Producer Price Index (PPI) and Consumer Price Index (CPI) data, with higher-than-expected inflation potentially increasing pressure on risk assets,” Kiwoom said in its report Thursday.

Pluang Research pointed to mounting pressure in the US bond market, describing it as a “snowball effect” that has been difficult to see on the surface.

The firm said investors concerned about further increases in 30-year Treasury yields have been buying options as protection, while dealers selling those options have been hedging their exposure by selling bonds or entering swap contracts.

“The thing is, these hedging actions are actually pushing yields even higher, creating a self-reinforcing cycle. A similar thing is happening in the mortgage-backed bond market after the Fed reduced its holdings, with the risk now largely held by private investment managers that are more aggressive in hedging their positions,” Pluang Research said Thursday.

“The combination of a large US budget deficit and these self-reinforcing market mechanisms explains why investors are starting to seek protection outside dollar assets,” it added.

On Wall Street, stocks closed lower Wednesday after investors were disappointed by a US Treasury buyback program that was smaller than expected. The S&P 500 fell 0.48%, while the Nasdaq Composite declined 0.64% and the Dow Jones Industrial Average dropped 0.77%.

Add as a preferred source on Google +