Jakarta. Indonesian stocks clawed back from intraday losses to close 0.31% higher at 5,282 on Wednesday, recovering in the final trading session despite concerns over domestic political risks, foreign investor selling and oil prices above $100 per barrel.

Jakarta Composite Index (JCI) gained 16 points after trading between 5,167 and 5,282 throughout the day. Trading volume reached 32.15 billion shares, with a total transaction value of Rp 15.82 trillion ($870.47 million) across more than 1.55 million transactions.

Market breadth remained negative, with 272 stocks advancing, 406 declining and 112 unchanged.

Pilarmas Investindo Sekuritas flagged planned demonstrations by students and other members of the public as a source of domestic political and social risk, adding to pressure from foreign investor selling following Indonesia’s market reclassification by MSCI.

“Meanwhile, global oil prices above $100 per barrel are adding pressure to the state budget,” Pilarmas wrote in its research note on Wednesday.

Despite the weakness in Indonesia, Asian markets mostly advanced, tracking gains on Wall Street as optimism over artificial intelligence (AI) stocks lifted investor sentiment. Hopes for progress toward peace in the Middle East also supported regional markets.

South Korea’s Kospi surged 6.8%, while Japan’s Nikkei 225 rose 1.1%. Hong Kong’s Hang Seng Index recovered 0.2%, and the Shanghai Composite Index edged up 0.5%.

Global investors were also awaiting the US Federal Reserve’s policy decision. The central bank was widely expected to hold interest rates steady, with investors looking for signals on the possibility of a rate increase in December.

Geopolitical developments continued to influence oil prices, Pilarmas said, as a closely contested Israeli election could affect the direction of the Middle East conflict.

Opinion polls showed Prime Minister Benjamin Netanyahu running neck and neck with opposition leader Gadi Eisenkot, suggesting weakening support for Netanyahu, a dominant figure in Israeli politics for decades who has led the country through nearly three years of sustained conflict.

Markets were also watching renewed diplomatic efforts to ease regional tensions. Officials from Saudi Arabia, Pakistan and Turkey met with Iranian leaders on Monday, while Iran’s Supreme Leader Mojtaba Khamenei called for an end to the “neither war nor peace” situation, signaling a possible opening for negotiations.

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