Jakarta. Indonesian stocks fell in early trading on Tuesday as investors turned cautious ahead of a key interest-rate decision from Bank Indonesia, while weakness across Asian markets added to the subdued mood.

The Jakarta Composite Index (JCI) slid 25.6 points, or 0.30%, within the first hour of trading, moving in a narrow range between 8,618 and 8,700. The benchmark index has been hovering near record highs in recent sessions, making it vulnerable to short-term profit-taking.

Trading activity remained relatively active. Data from the Indonesia Stock Exchange (IDX) showed 15.71 billion shares had changed hands in the morning session, with a total transaction value of Rp 7.6 trillion ($455.28 million) across more than 1.02 million trades.

Market breadth was mixed, with 314 stocks advancing, 298 declining and 177 trading flat. Blue-chip stocks in the LQ45 index slipped 0.25% in the first hour, reflecting caution among institutional investors.

Attention is firmly on Bank Indonesia’s policy meeting, where markets are looking for signals on the future direction of interest rates. Expectations of potential monetary easing have raised hopes for rate-sensitive sectors, including conventional banks, digital lenders, property developers and consumer-related stocks.

The cautious tone in Jakarta mirrored losses across major Asian markets. China’s Shanghai Composite dropped 1.19%, Japan’s Nikkei 225 slid 1.28%, Hong Kong’s Hang Seng Index fell 1.79%, and Singapore’s Straits Times Index eased 0.25%, as investors digested regional economic concerns and global rate uncertainty.

Overnight, US markets offered little direction. Wall Street drifted lower on Monday ahead of a series of economic data releases that could influence the Federal Reserve’s policy outlook. The S&P 500 slipped 0.2%, even as most of its constituents advanced. The Dow Jones Industrial Average fell 41 points, or 0.1%, while the Nasdaq Composite declined 0.6%, weighed down by weakness in technology shares.

Investors are now focused on US economic reports due later this week. A jobs report scheduled for Tuesday is expected to show that employers added about 40,000 more jobs than they cut in November. On Thursday, inflation data are forecast to show consumer prices rising 3.1% from a year earlier.

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