Jakarta. Jakarta Composite Index (JCI) ended Tuesday’s session slightly higher despite spending most of the day under pressure, as foreign investors continued to offload equities.

The JCI closed up 4.90 points, or 0.05%, at 8,980, after moving within a range of 8,873–8,980. Market turnover reached 58.75 billion shares, with a total transaction value of Rp 27.47 trillion ($1.64 billion) across more than 3.32 million trades. Decliners outnumbered advancers, with 410 stocks falling, 279 rising, and 117 ending unchanged.

Pilarmas Investindo Sekuritas said the index’s intraday weakness reflected sustained foreign selling pressure. Based on Monday’s trading data, foreign investors recorded a net sell of Rp 1.01 trillion in the regular market. Sentiment was further weighed by concerns over a new MSCI free-float rule, expected to be announced over the weekend.

Pilarmas cited Goldman Sachs, which estimates the rule, if implemented, could trigger foreign outflows of up to $2.3 billion from Indonesia’s financial markets.

The brokerage also noted investor caution over expectations that Bank Indonesia will maintain policy independence, following the recent appointment of President Prabowo Subianto’s nephew as BI deputy governor. Market participants, Pilarmas said, are wary that close political ties could raise concerns over coordination between fiscal and monetary policy.

Globally, markets are awaiting the outcome of the upcoming Federal Reserve policy meeting, where interest rates are widely expected to remain unchanged. However, Pilarmas flagged lingering concerns over the Fed’s independence amid speculation that US President Donald Trump may announce a new Fed chair as early as this week.

On the positive side, support came from China’s macroeconomic data. December 2025 industrial profits rose 0.6% year-on-year, beating forecasts of 0.3%. For the full year, industrial profits grew 0.6%, improving from 0.1% growth recorded over the first 11 months, signaling a gradual recovery in China’s industrial sector.

In regional markets, Asian shares were mostly higher. Japan’s Nikkei 225 climbed 0.9% to 53,333. Chinese markets closed mixed, with Hong Kong’s Hang Seng Index advancing 1.3% to 27,106, the Shanghai Composite adding 0.2% to 4,139, and Shenzhen’s benchmark edging down 0.1%.

Sentiment in Asia was also shaped by renewed US–South Korea trade tensions, after US President Donald Trump said Washington would raise tariffs on South Korean goods, citing delays in ratifying a bilateral trade framework announced last year.

In a post on Truth Social, Trump said import duties on autos, lumber and pharmaceutical products, along with other reciprocal tariffs, would be increased from 15% to 25%, arguing that South Korea’s legislature had failed to approve what he described as a “historic” trade deal reached in July 2025 and reaffirmed during his visit to Seoul in October.

“Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%,” Trump wrote.

Despite the tariff threat, South Korean equities advanced sharply, led by technology stocks, suggesting investors largely discounted the immediate impact of the announcement amid strong sector-specific momentum.

South Korea’s Kospi surged 2.7% to 5,084, led by gains in technology stocks. Samsung Electronics jumped 4.9%, and SK Hynix soared 8.7%, offsetting declines in automakers such as Kia Corp., down 1.1%, and Hyundai Motor, which fell 0.8%.

Overnight in the US, Wall Street ended higher. The S&P 500 rose 0.5% to 6,950.23, the Dow Jones Industrial Average gained 0.6% to 49,412.40, and the Nasdaq Composite added 0.4% to 23,601.36, as investors brace for a volatile week packed with key policy and earnings developments.

On the domestic board, Jasa Berdikari Logistics (LAJU) led gainers, surging 34.83%, followed by Buana Artha Anugerah (STAR), up 25%, Indal Aluminium Industry (INAI), which climbed 24.79%, and Bintang Oto Global (BOGA), rising 24.78%.

On the losing side, Royaltama Mulia Kontraktorindo (RMKO) dropped 14.92%, Inter-Delta (INTD) slid 14.84%, while Sunson Textile Manufacturer (SSTM) and Artha Mahiya Investama (AIMS) fell 14.81% and 14.63%, respectively.

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