Jakarta. Jakarta Composite Index (JCI) opened higher on Wednesday, but gains were limited as investors weighed persistent global uncertainty from weak US labor market data and awaited Bank Indonesia’s policy decision later in the day.

JCI rose 22 points, or 0.25%, to 8,708 in early evening trade. In the first five minutes, the benchmark moved within a range of 8,691 to 8,718. Trading volume reached 5.42 billion shares, with turnover totaling Rp 4.56 trillion ($273.40 million) and transaction frequency exceeding 215,000 trades. Market breadth was positive, with 303 stocks advancing, 172 declining and 193 unchanged.

Pilarmas Investindo Sekuritas said in its research that risk sentiment remained fragile after US labor market data underscored mounting pressure despite a partial rebound in payroll figures. US nonfarm payrolls rose to 64,000 after plunging 105,000 in October, while private payrolls improved to 69,000. Manufacturing payrolls remained in contraction, signaling continued weakness in job creation.

Pilarmas highlighted the October payroll drop as the largest since late 2020, reflecting heightened labor market stress as government workers were removed from payrolls and many Americans struggled to secure new jobs. The deterioration pushed the US unemployment rate up to 4.6%, above Pilarmas’ 4.5% tolerance level.

The data weighed on US markets on Tuesday with the Dow Jones Industrial Average falling 0.62%, the S&P 500 slipping 0.24%, and the Russell 2000 losing 0.45%. Long-term unemployment climbed to one of its highest levels since the end of 2021, although wage growth remained stable, with average hourly earnings rising 0.4% month on month and holding at 3.7% year on year.

Pilarmas said the softer labor backdrop increased concerns over US economic momentum but also strengthened expectations for further Federal Reserve rate cuts in 2026, with market pricing increasingly pointing to the possibility of two cuts despite the Fed signaling only one.

On domestic sentiment, investors were seen adopting a wait-and-see stance ahead of Bank Indonesia’s Board of Governors Meeting, with consensus expecting the BI Rate to be kept unchanged at 4.75%.

Pilarmas referred to the World Bank’s projection that Indonesia’s economy would grow 5% in 2026 and 5.2% in 2027, both below the government’s 2026 state budget target. Growth was still viewed as resilient, supported by investment, easing monetary policy, Danantara’s role as the sovereign wealth fund, and continued foreign capital inflows, although weakening middle-class consumption remained a key risk.

Low inflation was expected to provide room for further policy easing, while global trade tensions and fiscal pressures stayed elevated.

Across Asia, markets opened mixed. Japan’s Nikkei rose 30 points, or 0.06%, to 49,413, South Korea’s Kospi climbed 20 points, or 0.49%, to 4,019, and Hong Kong’s Hang Seng added 8 points, or 0.03%, to 25,243. Meanwhile, China’s Shanghai Composite slipped 2 points, or 0.05%, to 3,822.

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