Indonesia Stocks Slip as US-Iran Conflict Weighs on Markets

Indonesian stocks closed slightly lower on Wednesday as global bond yields rose due to concerns over inflation. The Jakarta Composite Index (JCI) shed 4 points, or 0.06%, to close at 6,595.

The market sentiment deteriorated after the US launched fresh attacks on Iranian targets near the Strait of Hormuz, causing crude oil prices to surge. Pilarmas Investindo Sekuritas said that higher energy costs could reignite inflationary pressures and narrow the room for central banks, particularly the Federal Reserve, to ease monetary policy.

The company noted that rising global bond yields have added further pressure on risk assets, including equities. The Fed's potential response to inflationary pressures is now being closely watched by markets.