Jakarta. Jakarta Composite Index (JCI) closed above the 8,000 mark on Monday, rebounding from early-session weakness as improving global sentiment and resilient domestic confidence lifted the market.

The benchmark index rose 96.61 points, or 1.22%, to finish at 8,031 in the evening session. The benchmark traded within a range of 7,863 to 8,031 during the day. Total trading volume reached 40.17 billion shares with turnover of Rp 17.21 trillion ($1.02 billion) across more than 2.2 million transactions. Gainers outnumbered losers, with 433 stocks advancing, 252 declining, and 136 unchanged.

Pilarmas Investindo Sekuritas said the rally was driven by improving external sentiment and sustained optimism among domestic consumers. The positive move also aligned with gains across most Asian equity markets, which responded to easing geopolitical tensions following constructive discussions between the United States and Iran.

US President Donald Trump described the talks as progressing very well, while Iranian officials called them a step forward. “Both countries also agreed to continue the negotiation process this week, triggering market optimism over reduced risks of military confrontation,” Pilarmas wrote in a Monday research note. 

Global sentiment was further supported by stronger data from China, where foreign exchange reserves rose by $41.2 billion to $3.399 trillion in January 2026 from $3.358 trillion in December 2025. “The increase reflects China’s relatively resilient export performance amid global uncertainty,” the brokerage said.

Domestically, the JCI strengthened as the government sought to restore market confidence after Moody’s and S&P Global Ratings flagged concerns over Indonesia’s investment performance, particularly fiscal governance and budgeting.

Still, sentiment found support in consumer confidence data. Bank Indonesia reported that the January 2026 Consumer Confidence Index remained in optimistic territory, rising to 127 from 123.5 previously. The improvement was in line with gains in the Current Economic Condition Index, which climbed to 115.1, and the Consumer Expectation Index, which increased to 138.8.

Global equities also advanced. Tokyo’s Nikkei 225 surged as much as 5% intraday to a record after Prime Minister Sanae Takaichi’s ruling coalition secured a two-thirds parliamentary supermajority. The index ultimately closed 3.9% higher at 56,363 after earlier hitting a record 57,337.

The landslide victory gives Takaichi a stronger mandate to pursue market-friendly policies, with her Liberal Democratic Party alone winning 316 seats, well above the 261-seat majority in the 465-member lower house and marking a record since the party’s founding in 1955. “So overall, as the LDP has gone from a very weak government that really couldn’t do anything to an extremely strong government now with the supermajority of the lower house, they really could call the shots,” said Neil Newman, managing director and head of strategy at Astris Advisory Japan.

Analysts said the result removes political uncertainty and allows the government to move forward with delayed budget measures aimed at addressing rising costs and weak wage growth. “Japan just delivered the kind of election result markets instinctively embrace because it removes the one thing traders price at a premium: political ambiguity,” said Stephen Innes of SPI Asset Management.

Elsewhere in Asia, markets rallied broadly. South Korea’s Kospi jumped 4.1% to 5,298, Hong Kong’s Hang Seng climbed 1.8% to 27,027, and China’s Shanghai Composite gained 1.4% to 4,123.

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