Jakarta Stocks Surge 1.68% as Asian Rally Lifts Risk Appetite

JAKARTA, 24 AUGUST 2026 —

Jakarta Stocks Surge 1.68% as Asian Rally Boosts Risk Sentiment

KUALA LUMPUR, Aug 20 (Reuters) – Indonesian equities surged on Thursday, with the Jakarta Composite Index (JCI) jumping 1.68% to close at 6,501, as a broad Asian market rally and Bank Indonesia’s decision to hold interest rates lifted investor sentiment.

The JCI advanced 107 points during the session, fluctuating between 6,444 and 6,514. Trading volume reached 78.68 billion shares, with a turnover of Rp 15.79 trillion ($889.02 million) across 2.28 million transactions. Gains were led by 452 advancing stocks, while 190 declined and 150 remained unchanged.

The rally mirrored positive performance across Asian equities and Wall Street, as investors largely disregarded the latest Federal Reserve meeting minutes, which hinted at potential support for higher interest rates. Instead, attention shifted to falling US Treasury yields, which encouraged greater exposure to riskier assets.

“Lower US Treasury yields have helped restore risk appetite,” Pilarmas Investindo Sekuritas noted in a Thursday research briefing. The decline in yields followed the US government’s announcement of expanded debt buyback operations, easing concerns over rising borrowing costs that had previously weighed on global equity markets.

Domestically, Bank Indonesia maintained its benchmark interest rate at 5.75%, a move aimed at safeguarding the rupiah amid heightened global volatility linked to the Middle East conflict. The central bank also retained its inflation target of 1.5%-3.5% for 2026 and 2027 while reaffirming its commitment to supporting sustainable economic growth.

Acting Bank Indonesia Governor Destry Damayanti emphasized that monetary policy would prioritize exchange-rate stability. The central bank also announced plans to expand its hedging incentive scheme to attract more capital inflows.

“Bank Indonesia will continue to intervene in both domestic and offshore markets and provide incentives to encourage foreign fund inflows,” Pilarmas said. “Macroprudential measures will also be used to ensure adequate banking liquidity to support credit distribution.”

In China, the People’s Bank of China kept its benchmark Loan Prime Rates unchanged, with the one-year rate at 3% and the five-year rate at 3.5%. Pilarmas attributed the decision to Beijing’s cautious stance amid ongoing domestic and global economic uncertainty, while maintaining an accommodative monetary policy.

Expectations for additional stimulus have grown following weaker-than-expected July economic data in China. Investors are now awaiting the Standing Committee of the National People’s Congress meeting from Aug. 25-28 for further policy signals.

Regionally, South Korea’s Kospi rebounded sharply with a 5.9% gain after plunging 5.8% on Wednesday amid renewed selling in artificial intelligence-related shares. Japan’s Nikkei rose 1.4%, Hong Kong’s Hang Seng gained 1.2%, and Shanghai’s Composite Index edged up 0.2%.

The broader Asian rally underscored a shift in investor focus from US monetary policy signals to easing financial conditions, particularly in sovereign debt markets. Analysts suggest this shift may continue to support risk assets in the near term, though geopolitical risks and central bank policy divergence remain key monitoring points.

Related: Federal Reserve · Jakarta