Jakarta. Jakarta Composite Index (JCI) opened stronger on Wednesday at 8,533, supported by improving global risk appetite as expectations for a US Federal Reserve rate cut continue to build.

The benchmark traded between 8,503–8,547 in the first 16 minutes, with 6.94 billion shares changing hands and turnover reaching Rp 3.48 trillion ($208.9 million) across more than 400,000 transactions. A total of 220 stocks advanced, 270 declined, and 197 were unchanged.

CGS International Sekuritas Indonesia said Wall Street’s overnight gains, fueled by rising odds of a Fed policy shift, helped lift early sentiment in Jakarta. Still, foreign selling and pressure on several commodity prices may cap further upside.

Investor focus remains on developments that could strengthen the case for a rate cut. Sentiment improved after Bloomberg reported that White House economic adviser Kevin Hasset is being considered for the next Fed chair, a figure investors expect would support the low-rate stance favored by President Donald Trump. Finance Minister Scott Bessent said Trump could announce the nomination before Christmas.

According to Pilarmas Investindo Sekuritas, US inflation pressures remain elevated after the Producer Price Index (PPI) rose 0.3 percent month on month, reversing the previous decline. Higher energy and food costs were the main drivers. Core PPI increased 0.1 percent MoM, while the annual reading eased to 2.6 percent. Pilarmas said the data may reduce the chances of a Fed cut by year-end.

The brokerage also noted signs of cooling US consumer momentum. Retail sales slowed to 0.2 percent from 0.6 percent, and Consumer Confidence dropped from 95.5 to 88.7 as households turn more cautious ahead of the holidays amid a softening labor market and rising unemployment. The recent US government shutdown has further weighed on sentiment. Even so, Pilarmas assessed the indicators as still within a manageable range while markets await the Fed’s Beige Book.

On the domestic side, Pilarmas highlighted improving sentiment following progress in the sovereign wealth fund Danantara–IDX initiative to develop a new benchmark index and expand Indonesian Exchange Traded Funds (ETFs) to global markets. Danantara plans to invest $10 billion in the fourth quarter of 2025, with 80 percent allocated domestically. Among its early projects are a Haj village in Saudi Arabia, upstream energy ventures with Pertamina, and waste-to-energy plants.

Pilarmas estimates Rp 8–16 trillion in potential new inflows to the capital market, strengthening liquidity and reducing reliance on foreign capital. Large-cap sectors, including finance, energy, telecommunications, and SOEs preparing IPOs, are seen as key beneficiaries.

US stocks climbed again Tuesday as traders priced in an 83 percent probability of a December Fed rate cut, according to CME Group data. The S&P 500 rose 0.9 percent, the Dow Jones Industrial Average jumped 664 points (1.4 percent), and the Nasdaq gained 0.7 percent. The rally was supported by easing bond yields and mixed economic data suggesting the economy could benefit from lower borrowing costs.

The S&P 500 finished at 6,765.88, the Dow at 47,112.45, and the Nasdaq at 23,025.59.

Across Asia, Japan’s Nikkei gained 353 points (0.72 percent) to 49,012, South Korea’s Kospi climbed 34 points (0.87 percent) to 8,891, Hong Kong’s Hang Seng added 152 points (0.58 percent) to 26,046, while Shanghai’s SSE slipped 3 points (-0.08 percent) to 3,867 before turning volatile.

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