Jakarta. Indonesia’s benchmark Jakarta Composite Index (JCI) settled 1.37 percent higher at 7,747 by Friday’s close, with intraday highs of 7,854 and lows of 7,790.

Trading activity reached 32.6 billion shares, valued at Rp 17.4 trillion. In total, 405 counters rose, 251 fell, and 149 remained unchanged, pushing the market capitalization to Rp 14,155.9 trillion.

The LQ45 index, which tracks the 45 most liquid stocks, also advanced 1.10 percent to 803.56, signaling broad-based gains across blue chips.

The index fell more than 1 percent on Monday after the announcement that long-serving Finance Minister Sri Mulyani Indrawati had been replaced by Purbaya Yudhi Sadewa. The market rebounded on Wednesday following a two-day sell-off. 

According to Rijadh Djatu Winardi, an economist from Gadjah Mada University, the sell-off was largely sentiment-driven rather than fundamental.

“Policy communication plays a crucial role in keeping market sentiment positive. Missteps can be misread as negative signals,” Rijadh said, adding that fiscal consistency, regulatory clarity, and measured communication are key for sustaining investor confidence. He emphasized that the new finance minister must prioritize stability to maintain trust in the market.

Across Asia, equities advanced on Friday, mirroring Wall Street’s record-setting rally as mixed US data strengthened bets for a Federal Reserve rate cut.

Japan’s Nikkei gained 0.9 percent to 44,768, supported by semiconductor and consumer stocks. Hong Kong’s Hang Seng rose 1.16 percent to 26,388 on reports that Beijing may direct state banks to absorb local government debts, while Shanghai’s Composite eased 0.12 percent to 3,870. Seoul’s Kospi surged 1.54 percent to 3,395.97, and Australia’s S&P/ASX 200 climbed 0.68 percent to 8,864.90.

Wall Street also extended its record-breaking streak overnight, with the S&P 500 up 0.8 percent, the Dow Jones Industrial Average jumping 617 points (1.4 percent), and the Nasdaq adding 0.7 percent.

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