Jakarta. Indonesian stocks climbed 1% on Tuesday, supported by improving domestic sentiment as stronger foreign exchange reserves and the reopening of several airports helped lift investor confidence.

The benchmark index rose 67 points, or 1%, to 6,686 at the close. A total of 380 stocks advanced, while 260 declined and 323 were unchanged. Trading value reached Rp 15 trillion ($850.58 million).

Pilarmas Investindo Sekuritas said the market benefited from Indonesia’s foreign exchange reserves, which rose to $146.5 billion at the end of August from $145.3 billion a month earlier.

Bank Indonesia said the reserves were equivalent to 5.4 months of imports, or 5.3 months of imports and government external debt payments.

Market sentiment also improved as several airports resumed operations after being temporarily closed due to volcanic ash from Mount Anak Krakatau. Pilarmas said the reopenings could revive economic activity, particularly logistics, supply chains, mobility and business connectivity.

“These developments have become one of the positive catalysts for the domestic stock market,” Pilarmas wrote in a research note Tuesday.

Across Asia, stocks traded mixed as investors monitored rising geopolitical tensions following a renewed escalation in the conflict between the United States and Iran. The tensions pushed up oil futures on concerns over potential disruptions to energy supplies through the Strait of Hormuz.

“Markets are also anticipating the risk of a prolonged Middle East conflict. Higher energy prices could fuel inflation while delaying expectations for global interest rate cuts,” Pilarmas said.

Japan’s economy grew 1.4% annually in the second quarter, beating the 1.1% forecast and marking its third consecutive quarter of growth. Pilarmas attributed the expansion to government spending and a positive contribution from net trade.

In China, the trade surplus widened to $119.1 billion in August from $112.5 billion in July. Exports jumped 25% year-on-year to $401.44 billion, while imports increased 28.2% to $282.36 billion.

In regional markets, Tokyo’s Nikkei shed 1.7% as major exporters came under selling pressure amid a surge in the Japanese yen. South Korea’s Kospi fell 0.6% after an early rally, while Hong Kong’s Hang Seng declined 0.3%. The Shanghai Composite edged up 0.2%.

Wall Street was closed Monday for the Labor Day holiday.

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