IHSG closes higher, tracking Asian and global markets

The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) closed higher on Thursday afternoon, tracking gains in Asian and global stock markets. The IHSG closed up 107.46 points, or 1.68 percent, at 6,501.59. Meanwhile, the LQ45 index of 45 leading stocks rose 11.27 points, or 1.80 percent, to 638.27.

“Regional Asian bourses strengthened in line with Wall Street’s gains, where market participants appeared to set aside the results of the Fed minutes release, in which many Fed officials began supporting interest rate hikes at last month’s meeting,” said Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his research note in Jakarta on Thursday.

From overseas, Nico said market participants tended to focus on the decline in US government bond yields, which encouraged investors to increase exposure to riskier assets. The decline in US government bond yields followed an announcement from the US Treasury Department that it would increase buybacks of long-term bonds to at least 4 billion US dollars per operation starting 9 September 2026, up from 2 billion US dollars previously.

“This policy plan has eased concerns over rising borrowing costs that have heavily burdened global equity markets,” Nico said.

China’s one-year loan prime rate (LPR) was held at 3.0 percent, while the five-year LPR remained at 3.5 percent. The decision followed the central bank’s pledge to maintain an accommodative monetary stance, while expectations for further stimulus measures were reinforced by weak economic data for July 2026 and Chinese Premier Li Qiang’s call to accelerate the shift towards new growth drivers.

Market participants are now awaiting the meeting of the National People’s Congress Standing Committee in Beijing on 25-28 August 2026 for further policy signals.