Jakarta. Jakarta Composite Index opened higher on Thursday rose 28 points or 0.32% to 8,705, supported by expectations of looser domestic liquidity conditions next year, even as persistent weakness in global equity markets limited upside.

The benchmark index moving within a range of 8,705 to 8,730 in the first five minutes.

RTI data showed trading volume reached 2.11 billion shares, with turnover totaling Rp 1.40 trillion ($83.82 million) across more than 208,000 transactions. Market breadth was positive, with 282 stocks advancing, 177 declining and 203 unchanged.

Investor sentiment was underpinned by Bank Indonesia’s accommodative policy outlook. After cutting the benchmark interest rate by a cumulative 125 bps this year to 4.75%, BI has signaled room for further easing in 2026, supported by low and manageable inflation and the need to sustain economic growth. While BI remains focused on maintaining rupiah stability amid elevated global uncertainty through market interventions, it is also targeting double-digit base money growth to expand liquidity and strengthen monetary policy transmission in synergy with fiscal policy.

Pilarmas Investindo Sekuritas said the prospect of rate cuts and looser liquidity could provide a positive stimulus for the economy by lowering borrowing costs, boosting household consumption and accelerating investment. For the banking sector, lower interest rates are expected to lift credit demand as business and consumer sentiment improves, although net interest margins could face short-term pressure if lending rates adjust faster than funding costs. Banks with strong current account and savings account (CASA) ratios and ample liquidity are seen as better positioned, while rupiah stability and easier liquidity conditions should help contain market and credit risks and support asset quality.

From abroad, Wall Street extended its decline overnight as further losses in artificial intelligence-related stocks dragged US equities lower for a fourth straight session. The S&P 500 fell 1.2%, marking its worst daily performance in nearly a month, while the Dow Jones Industrial Average slipped 228 points, or 0.5%. The Nasdaq Composite dropped 1.8%. Overall, the S&P 500 lost 78 points to 6,721, the Dow fell to 47,885 and the Nasdaq retreated to 22,693.

Despite slightly more gainers than decliners within the S&P 500, heavy selling in major AI names weighed on the broader market. Investors continue to question whether years of strong outperformance in AI-related stocks have pushed valuations too high, and whether massive investment in the sector will generate sufficient profits and productivity gains to justify rising debt levels.

A survey by UBS showed that only 17% of large companies are currently operating AI projects at scale. UBS analysts said this highlights the need for tech investors to remain cautious about the potential revenue boost from AI products in 2026, even as adoption rates continue to rise.

In Asia, markets traded mostly lower following the weak US lead. Japan’s Nikkei 225 dropped 454 points, or 0.92%, to 49,058.

Pilarmas noted that Japan’s exports rose for the first time since US tariffs were imposed, with overall export growth accelerating from 3.6% to 6.1%. Shipments to the United States climbed 8.8%, while exports to the European Union surged 19.6%. Imports also strengthened, rising from 0.7% to 1.3%, helping Japan’s trade balance swing to a surplus of JPY 322.3 billion ($2.1 billion) from a deficit of JPY 226.1 billion previously.

Stronger exports to the US helped offset weaker shipments to China, which fell 2.4%, driven mainly by declines in chipmaking machinery and non-ferrous metals amid ongoing political tensions. While exports to the US rebounded, Pilarmas cautioned that China remains Japan’s largest trading partner, and the country’s record annual trade deficit with China underscores its continued reliance on the Chinese market. Japan’s auto exports to the US rose 1.5% in value, with volumes up 7.7%, and average vehicle prices exceeding JPY 4 million for the first time since April.

Elsewhere in the region, Hong Kong’s Hang Seng Index slipped 138 points, or 0.54%, to 25,330, while China’s Shanghai Composite Index fell 13 points, or 0.34%, to 3,857.

South Korea’s Kospi dropped 67 points, or 1.67%, to 3,989.

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