Jakarta. Indonesia’s benchmark stock index surged more than 4% on Monday, tracking a broad rally across Asian markets after reports of a peace agreement between the United States and Iran eased concerns over global energy supplies and inflation.

Jakarta Composite Index (JCI) jumped 4.12%, or 247 points, to close at 6,254 after trading between 6,118 and 6,345 throughout the session. The index remained in positive territory all day.

Trading volume reached 54.2 billion shares with a turnover of Rp 29.9 trillion ($1.68 billion) across more than 3.2 million transactions. Gainers outnumbered losers, with 603 stocks advancing, 125 declining, and 90 unchanged.

According to Pilarmas Investindo Sekuritas, investor sentiment improved after reports that Washington and Tehran had reached a peace agreement that could help end months of heightened tensions in the Middle East.

The reported deal includes the reopening of the Strait of Hormuz this weekend, the lifting of naval blockades, the easing of sanctions on Iran, and the dismantling of Tehran’s nuclear program. The agreement is expected to be formally signed in Switzerland later this week.

Pilarmas said the prospect of peace has eased concerns over global energy supplies, triggering a sharp decline in oil prices and reducing fears of rising inflation and slower global economic growth.

Domestically, the brokerage said hopes for a resolution in the Middle East could benefit Indonesia by lowering pressure on inflation and the trade balance through weaker oil prices.

A firmer rupiah also reflected positive market sentiment toward the policy coordination between Bank Indonesia and the government to maintain economic stability.

“Market expectations for peace will help ease concerns over higher inflation and tighter monetary policy,” Pilarmas said in a research note on Monday.

Separately, World Bank projects Indonesia’s state budget deficit to remain elevated at 2.8% of gross domestic product in 2026 and 2027 before easing slightly to 2.7% in 2028, according to Kiwoom Sekuritas Indonesia. The outlook reflects pressure from energy subsidies, government priority programs, and rising debt servicing costs, with interest payments expected to increase from 18.7% to 19.2% of state revenue by 2028.

Regional markets also posted strong gains. Japan’s Nikkei 225 climbed 5% to a record high of 69,317.50, led by technology and artificial intelligence-related stocks. The benchmark index has gained more than 80% over the past year.

South Korea’s Kospi surged 5.2% to 8,545. Hong Kong’s Hang Seng Index rose 0.6% to 24,864, while China’s Shanghai Composite Index advanced 1.6% to 4,096.

On Wall Street, the S&P 500 gained 0.5%, marking its 10th weekly advance in the past 11 weeks. The Dow Jones Industrial Average rose 353 points, or 0.7%, while the Nasdaq Composite added 0.3%.