Jakarta Jakarta Composite Index (JCI) rose nearly 1% on Thursday morning, gaining 68 points to 7,179, as easing Middle East tensions and a sharp decline in oil prices improved global market sentiment and boosted appetite for risk assets.

The benchmark index moved within a range of 7,159 to 7,184 in early trading.

Trading activity was active in the opening minutes, with 2.1 billion shares exchanged worth Rp 1.2 trillion ($69.31 million) across more than 161,000 transactions. Gainers outpaced losers 366 to 150, while 179 stocks were unchanged.

Kiwoom Sekuritas Indonesia said global sentiment improved after reports emerged that the White House was nearing a peace agreement framework with Iran through a one-page memorandum aimed at advancing nuclear negotiations.

“The US requested an Iranian response within the next 48 hours, with proposals including a moratorium on uranium enrichment, lifting of sanctions, unfreezing billions of dollars in Iranian funds, and the reopening of the Strait of Hormuz,” Kiwoom said in its research note on Thursday.

According to the brokerage, President Donald Trump said Operation “Epic Fury” would end if Iran agrees to the deal, but warned military attacks could intensify again if negotiations collapse. Trump also temporarily halted “Project Freedom,” a program involving commercial ship escorts in the Strait of Hormuz.

Iran, through the Iranian Student News Agency (ISNA), said current negotiations remain focused on ending the conflict rather than discussing nuclear issues. Pakistan reportedly remains the main mediator between Washington and Tehran, while China is said to be pressuring Iran not to escalate tensions ahead of a planned meeting between Chinese President Xi Jinping and Trump next week.

Oil prices retreated sharply amid hopes of de-escalation in the region. Brent crude, the international benchmark, fell 7.8% to $101.27 per barrel after briefly surpassing $115 earlier this week. The decline came after Trump said the Strait of Hormuz could be “open to all” if Iran accepts the proposed agreement.

Domestically, Phintraco Sekuritas said the Indonesian government is preparing to issue yuan-denominated Panda Bonds in China as part of efforts to strengthen rupiah stability through more diversified international financing sources.

“With this issuance plan, the Indonesian government is expected not to rely solely on US dollar financing while potentially securing lower interest rates,” Phintraco Sekuritas said.

The brokerage also highlighted the government’s revised export proceeds regulation for natural resources, which will require exporters to place export earnings in state-owned banks and convert a maximum of 50% into rupiah starting June 1, 2026.

In addition, the government is preparing battery electric vehicle purchase subsidies expected to be launched in early June.

“This subsidy quota scheme will be released gradually. The government will allocate an initial quota of 100,000 vehicles in the first phase,” Phintraco Sekuritas said.

Across Asia as of 9:08 a.m. Jakarta time, Japan’s Nikkei 225 surged 5.40% to 62,729. South Korea’s KOSPI slipped 0.02% to 7,383. Hong Kong’s Hang Seng Index gained 1.61% to 26,635, while China’s SSE Composite Index rose 0.25% to 4,170.

Overnight on Wall Street, the S&P 500 climbed 1.5% for its strongest session in nearly a month and reached another record high. The Dow Jones Industrial Average jumped 612 points, while the Nasdaq Composite rallied 2% to a fresh all-time high.

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