Jakarta. Indonesia’s benchmark Jakarta Composite Index (JCI) rallied past the 7,000 mark for the first time in over three months on Thursday, buoyed by optimism surrounding a temporary easing in US–China trade tensions. The benchmark rose 1 percent to 7,050.5 as of 9:37 a.m. local time, after a 2.15 percent surge the day prior.

This is the first time the index has crossed the psychological level since Feb. 5, a sign that investor sentiment is rebounding after weeks of volatility driven by heightened geopolitical and trade risks.

The latest rally was fueled by a 90-day suspension of tariffs between the US. and China, announced following high-level talks in Genevaon Monday The move eased fears of a global recession and sparked recovery across emerging markets.

“We see the 7,000 mark to be a positive psychological resistance level that is quite challenging to break. If the JCI fails to sustain momentum, we may see a pullback to lower support levels,” NH Korindo Sekuritas Indonesia wrote in a Thursday note.

US–China Reset Eases Market Anxiety

Helmy Kristanto, analyst at BRI Danareksa Sekuritas, described the development as a “total reset” in US–China relations. “The trade war de-escalation, marked by a 90-day suspension, has eased recession concerns and provided relief to global markets,” Kristanto said. “Trump's declaration of a ‘total reset’ signals a willingness to cooperate and a complete reversal from his earlier stance.”

Helmy also highlighted comments from US Treasury Secretary Scott Bessent, who said that “neither side wants to decouple,” offering further reassurance that the two largest economies are aiming to reduce tensions.

Under the temporary truce, China will reduce tariffs on US goods from 125 percent to 10 percent, while the US will lower tariffs on Chinese imports from 145 percent to 30 percent.

Still, Helmy warned that the historical precedent suggests caution. “A similar truce in 2018 paused tariffs but ultimately failed, resulting in the 2020 Phase One deal. While markets have responded positively, the path forward remains uncertain.”

From Rout to Recovery

The JCI had tumbled 3.82 percent over the April 8–11 trading window, falling to 6,262.23, its sharpest weekly loss in years, after US President Donald Trump abruptly hiked tariffs on several trading partners, including Indonesia. The resulting selloff wiped out Rp 431 trillion ($25.6 billion) in market value and prompted a significant pullback by foreign investors.

Banking and mining stocks, particularly vulnerable to international trade dynamics, were hit hardest during the downturn.

US equities posted modest gains Wednesday. The S&P 500 inched up 0.1 percent to 5,892.58, while the Nasdaq Composite rose 0.72 percent to 19,146.81. The Dow Jones Industrial Average fell 0.21 percent to 42,051.06.

Indonesia, one of the countries targeted in Washington’s tariff offensive, has dispatched a high-level delegation to the US led by Chief Economic Affairs Minister Airlangga Hartarto, on April 2. The team is pushing for tariff exemptions within a 60-day negotiation window. In exchange, Indonesia is offering to increase imports of US goods --including liquefied petroleum gas, gasoline, soybeans, and capital goods-- and to ease domestic content rules on electronics.

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