Jakarta's benchmark index rose 3 percent on Tuesday, after hitting a six-year low in the previous session as the world's worst-performing stock market this year dropped 14.8 percent over Friday and Monday.

Crude prices resumed their climb as markets weighed an executive order from US President Donald Trump that waived some sanctions and tariffs on Russian energy.

Jakarta's benchmark stocks fell over 5 percent in early trading on Monday after plunging 11.6 percent on Friday, as the world's worst performers reeled from index provider MSCI saying it was considering shifting Indonesia to "standalone" status from its current "emerging markets" mantle.

Analysts say Friday’s stock market rout was driven by panic-selling following MSCI’s consideration to reclassify Indonesian equities in its global indexes, pushing cumulative foreign outflows for the year to a historical high of Rp 88.19 trillion.  

Indonesia’s commodity supply chains, which serve both domestic and global markets, are ready to adopt sustainable practices, and industry players are being encouraged to recognize their importance.

MSCI’s latest proposal to reclassify Indonesia as “standalone market” is a fresh blow for the Indonesia Stock Exchange (IDX), which has observed its benchmark index moving downward since the global index provider first issued its transparency concerns in January.

MSCI said investors ​had raised concerns about opaque ownership structures, concentrated shareholdings and suspected ​coordinated trading, which it said undermined the market's investability.

Asian stocks plunged Thursday as technology firms suffered another rout after forecast-topping US inflation data fueled expectations the Federal Reserve would further increase interest rates.

Private bankers and asset allocators told Reuters that Asian investors are increasingly seeking asset diversification compared to their usual allocations to equities and bonds.

Asian shares inched higher on Wednesday as those related to artificial intelligence found respite after a selloff, while any gain was tempered by elevated oil prices and caution ahead of United States inflation data later in the global day.

Japanese pensions, Indonesia's sovereign wealth fund looking to add exposure to hedge funds

Seoul, Tokyo and Taipei led losses across Asian stock markets on Tuesday as technology firms plunged on fresh worries about the outlook for the AI investment boom, with traders preparing for a crucial earnings season and release of key US data.

The dollar held ground near its strongest level in a year and a half in early Asian trade on Monday as an escalating Middle East conflict kept investors wary ahead of key US inflation data later this week that will influence monetary policy.

Anxiety returned as figures showed Tehran had increased strikes on tankers in the Strait of Hormuz, Houthis rebutted claims they had lost key territory and top oil officials warned that global reserves were running worryingly low.

Both global benchmark Brent and West Texas Intermediate rebounded Tuesday and rose in early Asian trade, as figures showed Tehran had increased strikes on tankers in the crucial Strait of Hormuz.

The euro weakened sharply on Monday to a 17-month low as fiscal worries in France amid a steep bond market rout stoked fears of contagion risks in the region, helping the dollar shrug off soft US jobs data that dented near-term rate hike expectations.

Crude oil exports from the Middle East rose above pre-war levels in four of the seven days of the final week of September, shipping data showed on Monday, despite attacks on vessels passing through the Strait of Hormuz.

Aramco has been looking ​at offering discounts for oil loaded off Oman to compensate buyers for record freight ​rates, people familiar with the matter said last week, as it sought to protect its market ‌share ⁠after the regional conflict hit exports.

In February, Danantara CEO Rosan Roeslani said that it was common practice for sovereign wealth funds (SWFs), a role Danantara partly fulfills, to hold stakes in global bourses, typically ranging from 15 to 30 percent.  

The US dollar headed for its third straight week of gains on Friday, perched at a 17-month high as a bond market rout pushed borrowing costs across the globe to multi-decade peaks in the face of inflationary fears over higher oil prices.

The rise in borrowing costs has been front-and-center for investors, given that sovereign yields are an anchor for global markets, a reference price for investing in riskier stocks and a benchmark for mortgages and corporate borrowing.

The rupiah has again breached a psychological threshold against the United States dollar as fading hope for a swift settlement of the Iran war pushes up global energy prices and inflation in Indonesia, triggering fresh capital outflows from Indonesia.

Hopes for an easing of Middle East tensions were dashed at the weekend when Donald Trump rejected Iran's offer for a seven-day truce.

Several other stocks were affected by the price floor change and hit the lower auto-rejection limit, including tech giant PT GoTo Gojek Tokopedia, property developer PT Lippo Karawaci and PT Repower Asia Indonesia, as well as rice producer PT Buyung Poetra Sembada.  

At a hearing with the House of Representatives on Monday, BI Governor Destry Damayanti said the central bank had reduced its spot market foreign exchange interventions to 30 percent of total interventions because they were too costly.

Oil prices spiked with bond yields Monday as Donald Trump's rejection of an Iranian offer of a seven-day truce stoked inflation concerns, while stocks were mixed as traders look ahead to the release of key US data.

The rebound came following a recovery in exports via the Strait of Hormuz, which were set to hit about 7.4 million bpd this month.