JSX Weakens Amid Iran-Israel-US Conflict Escalation
Indonesia’s Jakarta Stock Exchange (JSX) on Monday morning moved lower, following weakness in Asian regional markets. The decline was driven by heightened conflict between Iran, the United States and Israel.
The JSX opened weaker by 23.95 points or 0.29 per cent to 8,211.31. Meanwhile, the LQ45 index of 45 blue-chip shares fell 2.99 points or 0.36 per cent to 834.90.
“Kiwoom Research recommends reducing portfolio positions and adopting a wait-and-see stance for the time being,” said Head of Research at Kiwoom Securities Indonesia, Liza Camelia Suryanata, in her analysis in Jakarta on Monday, 2 March 2026.
Liza said market participants are entering the week with geopolitical risk as the primary driver.
She noted that energy and precious metals are the main defensive sectors, whilst global equities and risky assets face high volatility at Monday’s market opening and for at least the coming week.
“The main focus for investors is the duration of the conflict and its level of escalation, the stability of the Strait of Hormuz, and the direction of oil prices above USD 90-100 per barrel,” said Liza.
On the other hand, drawing lessons from the 2022 Russia-Ukraine war, Liza noted that the commodity-driven Indonesian market would actually benefit from rising commodity prices at the global level.
From the Asian region, stock exchanges across Asian countries weakened, with Kuwait’s stock exchange even halting trading and the United Arab Emirates closing its stock market on Monday and Tuesday following the Iranian attack.
From the European region, the European Union called for maximum restraint, protection of civilians, full respect for international law, and prevention of escalation that could disrupt the Strait of Hormuz and trigger global economic impacts, although there are differing views within the bloc and Europe’s influence over the conflict is deemed limited.
Regarding domestic economic data, market participants are awaiting the release of inflation data for February 2026 and trade balance data for January 2026, which is estimated to show a surplus rising to USD 2.76 billion, alongside apparent growth in imports and exports.
Wall Street indices fell uniformly during Friday’s (27 February) trading, with the Dow Jones index declining 1.05 per cent to 48,977.92, the S&P 500 index correcting 0.43 per cent to 6,878.88, and the Nasdaq index weakening 0.92 per cent to 22,668.21.
Asian regional stock indices this morning included the Nikkei index weakening 908.90 points or 1.54 per cent to 57,941.39, the Shanghai index weakening 19.35 or 0.47 per cent to 4,143.52, the Hang Seng index weakening 698.67 points or 2.62 per cent to 25,931.85, the Kuala Lumpur index weakening 15.02 points or 0.87 per cent to 1,701.59, and the Straits Times index weakening 101.54 points or 2.03 per cent to 4,893.52.