Jakarta. Jakarta Composite Index (JCI) fell 63 points, or 0.92%, to close at 6,905 on Monday as escalating Middle East tensions and investor caution ahead of the MSCI Indonesia rebalancing weighed on the market.

RTI data showed trading volume reached 41.42 billion shares with turnover of Rp 20.5 trillion ($1.17 billion) and more than 2.8 million transactions. Decliners outpaced gainers 442 to 251, while 125 stocks were unchanged.

Brokerage Pilarmas Investindo Sekuritas said global sentiment remained under pressure after US President Donald Trump rejected Iran’s response to the latest US peace proposal, fueling concerns over prolonged disruptions in the Strait of Hormuz, a key global oil shipping route.

“Rising oil prices due to the escalating Middle East conflict have also dampened investor risk appetite across Asian equity markets. Regional bourses moved mixed amid the geopolitical uncertainty,” Pilarmas wrote in its Monday research note.

Pilarmas added that investors were also awaiting a meeting between Trump and Chinese President Xi Jinping in Beijing on May 14-15, which markets hope could ease geopolitical tensions and maintain trade stability between the world’s two largest economies.

Domestically, the brokerage said the MSCI Indonesia rebalancing continued to encourage a wait-and-see stance among investors.

Market sentiment was further pressured by the government’s plan to impose a windfall tax on nickel mining profits, along with export duties on nickel and coal commodities.

“The policy is seen as potentially weighing on mining companies’ profit margins amid fluctuating global commodity prices and rising operational costs,” Pilarmas said.

Despite the market weakness, Pilarmas noted that Indonesia’s consumer confidence remained resilient. Bank Indonesia recorded the Consumer Confidence Index (CCI) at 123 in April 2026, slightly higher than 122.9 in March.

“The data shows household optimism remains intact despite rising global economic uncertainty,” Pilarmas added.

Across Asia, markets traded mixed on Monday after Wall Street hit fresh records and oil prices surged more than 3% following Trump’s rejection of Tehran’s latest response related to ending the Iran war.

Japan’s Nikkei 225 slipped 0.5% to 62,417 after earlier touching another intraday record above 63,300. SoftBank Group tumbled more than 6%.

South Korea’s Kospi jumped 4.3% to 7,822 and also hit an all-time intraday high, driven by gains in technology stocks including Samsung Electronics and SK Hynix.

Technology and artificial intelligence-related optimism have continued to support markets in Japan and South Korea despite the Iran conflict, with the Nikkei 225 and Kospi rallying more than 10% and 30%, respectively, over the past month.

Hong Kong’s Hang Seng edged up less than 0.1% to 26,401, while China’s Shanghai Composite rose 1.1% to 4,225 after data showed factory gate prices increased 2.8% in April from a year earlier, the highest level since 2022, alongside stronger-than-expected export figures.

Oil prices rallied sharply on Monday amid fears surrounding the Iran conflict. Brent crude climbed 3.6% to $104.89 per barrel, while US benchmark crude rose 3.9% to $99.15 a barrel.

On Friday, Wall Street extended its rally to fresh highs. The S&P 500 gained 0.8% to 7,398, while the Nasdaq Composite surged 1.7% to a record 26,247. The Dow Jones Industrial Average edged up less than 0.1% to 49,609 after stronger-than-expected US jobs data boosted investor sentiment despite geopolitical risks.

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