(March 25): The Indonesian rupiah and stocks gained as domestic markets reopened after a week-long holiday, buoyed by hopes over the Trump administration’s push to ease Iran war tensions.
The rupiah rose as much as 0.6% against the dollar, the most in more than six months, to lead Asian peers in early Wednesday trading. The Jakarta Composite Index of shares jumped as much as 1.3%. The benchmark 10-year bond yield climbed six basis points.
The gains mirrored broader advances across Asia as investors welcomed President Donald Trump’s signal that Iran had offered a “present” as a good-faith gesture in negotiations, even as the US deploys more troops to the Middle East. Oil prices, a key concern for investors in Indonesian assets, fell on Wednesday.
“Uncertainty remains very elevated,” Rully Arya Wisnubroto, head of research at PT Mirae Asset Sekuritas Indonesia, wrote in a note. “As a result, market volatility continues to be driven by headline risk and shifting perceptions of escalation versus de-escalation.”
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