Jakarta. Jakarta Composite Index (JCI) climbed deeper into positive territory on Tuesday, rising 98 points, or 1.52%, to 7,598, tracking gains across Wall Street and Asian markets as investors shrugged off geopolitical tensions.

In early trading, the benchmark moved within a range of 7,592 to 7,613. Volume reached 2.1 billion shares with turnover of Rp 1.2 trillion ($70 million) across more than 136,000 transactions. Gainers outpaced losers, with 408 stocks advancing, 82 declining, and 201 unchanged.

Global markets remained resilient despite escalating geopolitical risks, with oil prices briefly reclaiming the $100 per barrel level following a US blockade of the Strait of Hormuz.

US equities rallied on Monday, fully recovering losses triggered by the US-Iran conflict, as investors grew more confident that the global economy may still avoid a worst-case scenario. The S&P 500 rose 1% to return near pre-conflict levels, now just 1.3% below its all-time high. The Dow Jones Industrial Average gained 301 points, or 0.6%, while the Nasdaq Composite advanced 1.2%.

Oil prices, which surged above $100 per barrel after ceasefire talks failed over the weekend, pared gains as trading progressed. Overall, market movements have been relatively contained compared to the sharp volatility seen earlier in the conflict.

Markets have been oscillating between fears of a prolonged war and optimism over a potential resolution, as all parties stand to benefit from smoother crude flows.

“Markets are taking some encouragement from the fact that the two sides are talking and that the broader ceasefire seems to be holding, for now,” said Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute.

Speaking outside the Oval Office, US President Donald Trump signaled continued openness to dialogue.

“I can tell you that we’ve been called by the other side,” Trump said.

Beyond geopolitics, Kiwoom Sekuritas Indonesia noted a shift in Federal Reserve expectations, with the probability of a 25 basis point rate cut in December now at around 27%.

The earnings season has also begun on a mixed note. Goldman Sachs posted a 19% increase in first-quarter profit and revenue of $17.23 billion, though its shares declined due to weak performance in its fixed income segment. Other major banks, JPMorgan, Citigroup, Bank of America, and Morgan Stanley, are set to report, alongside corporate earnings from Netflix and PepsiCo.

“Global sentiment is currently in a fragile risk-on phase, where the market does not need a full resolution of the conflict to move upward, just marginal improvement,” Kiwoom said.

Domestically, Bank Indonesia maintained that economic fundamentals remain solid, citing 70 consecutive months of trade surplus, inflation at 3.5% year-on-year, and projected first-quarter growth of around 5.5%.

However, the rupiah’s depreciation to its weakest level underscores investor focus on external pressures, including elevated global yields, a stronger US dollar, and ongoing capital outflows.

“The government highlighted fiscal risks from rising oil prices, with potential additional subsidies of up to around Rp 100 trillion if the rupiah stays within the 16,800–17,000 range, asserting that current stability is more ‘managed’ than organic,” Kiwoom added.

Against this backdrop, the government is stepping up energy diplomacy efforts. President Prabowo Subianto, accompanied by Energy and Mineral Resources Minister Bahlil Lahadalia, is planning a visit to Russia to meet President Vladimir Putin and strengthen long-term oil supply cooperation.

Across Asia, markets also traded higher as of 9:10 a.m. Jakarta time. Japan’s Nikkei surged 2.55% to 57,938, South Korea’s Kospi jumped 3.22% to 5,993, Hong Kong’s Hang Seng gained 1.07% to 25,935, and China’s Shanghai Composite edged up 0.45% to 4,006.

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