FX.co ★ Indonesian Stocks Fall Sharply to Kick Off Week

Indonesian shares fell 78 points, or 1.2%, to 6,461 in early Monday trading, extending losses for a fourth straight session to a two-week low. Risk sentiment weakened as U.S. equity futures slipped amid a sharp rise in oil prices, after Saudi Arabia shut a key pipeline following drone attacks and delayed talks with Gulf states. Hotter-than-expected U.S. inflation data further strengthened expectations of higher interest rates.

Investors were also cautious ahead of a fresh batch of August activity data from China, Indonesia’s largest trading partner. The figures, due Tuesday, will include industrial production, retail sales, and the surveyed unemployment rate.

Selling was broad-based, with all major sectors in negative territory, led by basic materials, energy, infrastructure, and transport. Losses were partially limited, however, by ongoing policy measures aimed at shoring up market confidence. These included President Prabowo’s commitment to contain the budget deficit and regulatory steps to address MSCI’s transparency concerns ahead of its November review.

Among notable laggards were Merdeka Copper Gold (-4.9%), Darma Henwa (-2.9%), Aneka Tambang (-2.8%), and Barito Pacific (-2.1%).