Jakarta. Indonesia’s benchmark index extended gains on Wednesday, with the Jakarta Composite Index (JCI) rising 0.41% to close at 7,101, supported by bargain hunting but capped by global uncertainty and a cautious wait for key data and the Federal Reserve decision.

RTI data showed trading volume reached 42.8 billion shares, with turnover at Rp 17.1 trillion ($985.78 million) across more than 2.5 million transactions. Advancers outpaced decliners, with 379 stocks rising, 282 falling, and 154 unchanged.

Pilarmas Investindo Sekuritas said the gains were relatively modest as markets remained overshadowed by external risks and a lack of fresh catalysts.

Top gainers were led by Inocycle Technology (INOV), which surged 34.68%, followed by Rohartindo Nusantara Luas (TOOL) up 34.29%, Perdana Bangun Pusaka (KONI) gaining 24.89%, and Bekasi Asri Pemula (BAPA) rising 19.60%. On the losing side, Danasupra Erapacific (DEFI) fell 14.87%, Langgeng Makmur Industri (LMPI) dropped 14.85%, Krida Jaringan Nusantara (KJEN) slid 14.63%, and PP Presisi (PPRE) declined 11.32%.

Pilarmas noted that domestic equities continued to face pressure from rising global geopolitical tensions, as Asian markets moved mixed amid escalating friction between the United States and China ahead of a planned meeting between Donald Trump and Xi Jinping.

The United States has also tightened scrutiny of China’s ties with Iran, imposing sanctions on a major refinery and warning Chinese banks of potential further penalties.

“This condition adds pressure to global markets,” Pilarmas wrote in its Wednesday research note.

From the domestic side, the firm said the JCI was lifted by bargain hunting following prior sessions of weakness, alongside support from gains in U.S. stock futures ahead of the Federal Reserve’s interest rate decision.

However, the upside remained limited as investors adopted a wait-and-see stance ahead of key economic data due later this week, including April inflation and March trade balance figures.

Additional sentiment came from reports that the government had scrapped the Free Nutritious Meals program on Saturday to save around Rp 1 trillion per day. “This step is seen as helping ease fiscal pressure, although it is not strong enough to push the market significantly higher,” Pilarmas said.

Across Asia, markets were mostly higher despite overnight losses on Wall Street, while oil prices rose on uncertainty over the timeline of the Iran war and after the United Arab Emirates signaled it would leave Organization of the Petroleum Exporting Countries (OPEC), potentially weakening the cartel’s supply control.

Markets in Japan were closed for a holiday. South Korea’s Kospi gained 0.8% to 6,690, Hong Kong’s Hang Seng rose 1.5% to 26,050, and China’s Shanghai Composite added 0.7% to 4,107.

The UAE’s planned exit from OPEC on Friday has drawn close attention, given the group accounts for roughly 40% of global oil output and the UAE is among its largest producers.

“The UAE’s exit will increase oil output,” ING Bank strategists Warren Patterson and Ewa Manthey wrote. “The UAE has been increasingly frustrated in recent years by output constraints under OPEC quotas, which have kept production below its potential.”

“However, before this can be realized, there must be a resolution in the Persian Gulf that allows for uninterrupted energy flows through the Strait of Hormuz,” they added.

With US-Iran negotiations stalled and the Strait of Hormuz—through which about one-fifth of global oil supply previously passed—still largely closed, analysts said short-term oil price movements will depend on prospects for reopening the waterway.

ING added that the UAE’s departure “will reduce OPEC’s effectiveness in managing and influencing the global oil market through supply measures.”

Investors are also awaiting further updates on U.S.-Iran peace talks. Iran has offered to reopen the Strait of Hormuz if the United States lifts its blockade on Iranian ports, though Washington appears unwilling to agree to a deal that excludes Tehran’s nuclear program.

On Wall Street overnight, major indexes retreated from record highs. The S&P 500 fell 0.5% to 7,138, the Dow Jones Industrial Average slipped 0.1% to 49,141, and the Nasdaq Composite dropped 0.9% to 24,663.

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