03.03.202607:45:52UTC+00Indonesia Shares Reverse Early Gains on Iran Tensions, Inflation Spike

Indonesia’s benchmark stock index fell 74 points, or 0.9%, to 7,940 on Tuesday afternoon, reversing its morning gains and logging a second consecutive session of losses. Market sentiment deteriorated as U.S. equity futures declined, with traders assessing how U.S. and Israeli strikes on Iran might affect energy prices and the broader global economy. At the same time, China signaled it is closely watching whether President Trump will seek new avenues to reimpose tariffs that were struck down by the U.S. Supreme Court.

Domestically, inflation accelerated sharply in February to 4.76% from 3.55% previously, its highest level since March 2023. The pickup complicates the outlook for price moderation amid rising energy costs and continued rupiah weakness. The IDX Composite retreated to a three-week low as most sectors declined, led by transportation, infrastructure, and property. Among the notable laggards were Elnusa (-4.5%), Amman Mineral International (-3.8%), Harum Energy (-3.3%), and Solusi Sinergi Digital (-3.0%). Investors are now looking ahead to mainland PMI data due on Wednesday.