FX.co ★ Indonesian Shares Start Week Higher Despite Geopolitical Jitters

Indonesia's IDX Composite climbed 36 points, or 0.5%, to 7,669 in Monday morning trade, extending gains for a second consecutive session, supported by strength in the transport, industrial, and basic materials sectors. Sentiment was boosted by news that China, Indonesia’s largest trading partner, kept its key lending rates at record lows for the 11th consecutive month in April, in line with market expectations.

Upside momentum was limited, however, by a sharp decline in U.S. stock futures after Washington seized an Iranian cargo ship accused of attempting to breach its blockade. Tehran vowed retaliation and ruled out further talks, adding to geopolitical uncertainty.

On the domestic front, investors are looking ahead to Bank Indonesia’s policy meeting this week, after the central bank left interest rates unchanged for a sixth straight meeting in March. While inflation currently remains within the official target range, the balance of risks is tilted to the upside, with geopolitical tensions heightening concerns over core inflation.

Early gainers included Bumi Resources Minerals (+5.3%), Impack Pratama Industri (+4.4%), Energi Mega Persada (+3.4%), and Triputra Agro Persada (+3.0%).