Jakarta. Jakarta Composite Index (JCI) rebounded sharply on Wednesday, climbing 101 points, or 1.41%, to 7,149 in early trade, as easing geopolitical tensions sparked a relief rally across global equities.

The index moved within a tight range of 7,141–7,158 shortly after the opening bell. Trading activity reached 1.1 billion shares, with turnover at Rp 731.3 billion ($43 million) across more than 65,000 transactions. Gainers dominated the board with 407 stocks rising, compared to 104 decliners and 135 unchanged.

Global sentiment shifted after Donald Trump signaled that the United States could withdraw from Iran within two to three weeks, claiming its objective of neutralizing nuclear threats had been achieved. Military operations, however, are still ongoing, with Iranian missile facilities continuing to be targeted.

Trump also stressed that a formal agreement with Iran is not required for troop withdrawal. The US strategy appears to be pivoting, opting to weaken Iran militarily before shifting toward diplomatic pressure, while encouraging European and Gulf allies to assume responsibility for securing the Strait of Hormuz. His call for other countries to “take the strait” has raised concerns over a potential power vacuum in a critical global energy corridor.

Iran, meanwhile, has signaled readiness to end the conflict but continues to demand security guarantees and has yet to reopen the Hormuz Strait. Additional risks emerged with threats of potential attacks on US technology company facilities in the Middle East starting April 1.

“The market is responding through a clear mechanism: a relief rally in equities as the probability of de-escalation rises, followed by a correction in oil prices. However, as long as Hormuz is not fully reopened, the energy risk premium remains elevated and continues to anchor global volatility,” said Kiwoom Sekuritas Indonesia in a research note.

Domestically, Phintraco Sekuritas noted that the State Secretariat Minister confirmed that Pertamina would not raise subsidized or non-subsidized fuel prices, despite earlier expectations of an increase on April 1.

The government has also officially implemented a work-from-home policy for civil servants every Friday, effective April 1, which will be reviewed in two months.

“The government is also accelerating the rollout of B50 to boost energy independence. In addition, budget efficiency measures across ministries and agencies could generate savings of Rp 121 trillion to Rp 130 trillion,” Phintraco added.

Investors are now watching key domestic data releases. Indonesia’s manufacturing PMI for March is projected to ease to 51.2 from 53.8, likely due to holiday-related disruptions. Meanwhile, February’s trade surplus is estimated at $1.2 billion, up from $0.9 billion in January. March inflation is forecast at 0.3% month-on-month and 4.9% year-on-year, compared with 0.68% MoM and 4.76% YoY in February.

Across Asia, markets rallied in tandem with Wall Street gains. South Korea’s Kospi jumped 5.2% to 5,312, while Japan’s Nikkei 225 rose 3.5% to 52,840. Hong Kong’s Hang Seng advanced 2.24% to 25,357, and China’s Shanghai Composite gained 1.21% to 3,939.

Overnight in the US, equities posted their strongest performance in months. The S&P 500 surged 2.9% to 6,528, marking its biggest gain since May. The Dow Jones Industrial Average climbed 2.5% to 46,341, while the Nasdaq Composite jumped 3.8% to 21,590.

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