Bank Indonesia's rate cut this week stunned markets for all the wrong reasons - investors fear the central bank is bowing to pressure from President Prabowo Subianto to juice the economy, compromising its independence and risking a rupiah sell-off.

Asian markets swung Friday at the end of a strong week for investors following the US interest rate cut, with attention now turning to a call between Donald Trump and Xi Jinping.

The IDX Composite climbed another 0.5 percent to 8,065.74 points in Thursday's opening session before slipping to close 0.21 percent lower at 8,008.43 points.  

Equities wavered in Asia on Thursday after the Federal Reserve lowered interest rates but left investors wondering how many more cuts were in the pipeline despite boss Jerome Powell warning about the struggling jobs market.

The US Federal Reserve is poised to make its first interest rate cut of 2025 on Wednesday, but it battles competing forces in the path forward -- with heightened political pressure and likely divisions among its ranks.

Foreign investors are plotting a return to China's stock markets in a big way three years after pulling back and terming them uninvestable, encouraged by the tech opportunities on offer, and a growing demand for diversification beyond US assets.

Asia stocks climbed on Tuesday while the dollar was on the back foot as investors bet the US Federal Reserve would resume its easing cycle this week and potentially leave the door open to further rate cuts.

Growing concern about debt levels in developed economies could see some bond investors look to emerging market issuances as an alternative, but in Indonesia, they will want answers about the new finance minister and the burden-sharing scheme with Bank Indonesia (BI).

French politicians sounded the alarm after the Fitch agency downgraded the country's credit rating, with the outgoing interior minister on Saturday blaming the move on "decades of fiscal mismanagement".

Asian equities mostly rose Thursday as investors built on this week's rally after US data ramped up expectations for a string of interest rate cuts. Jakarta jumped after the government said it plans to inject around $12 billion into the economy. 

Asian stocks tracked Wall Street higher on Wednesday and bonds fell as traders firmed up bets that US labor market softness would spur the Federal Reserve to cut rates by at least a quarter point next week.

The IDX Composite faced turbulence amid external factors, including political unrest in late August and Monday’s announcement of Finance Minister Sri Mulyani Indrawati’s dismissal.

Stocks rose and the dollar wobbled on Monday after dismal US labor data sealed the case for an interest rate cut this month, while the yen fell as investors girded for uncertainty in Japan following the resignation of Prime Minister Shigeru Ishiba.

The IDX Composite fell as much as 3.6 percent at the market’s opening on Sept. 1, following political unrest that began the previous week, before regaining part of its losses over the course of the week.

China's stocks steadied on Friday after steep losses in the previous session, but remained on course for their biggest weekly falls in five months as market participants took profits following a two-month rally.

Asian stocks moved higher in early trading on Thursday as dovish comments from Federal Reserve officials soothed investor nerves at a time of heightened concerns over global growth and a selloff in bond markets.

A global slide in long-dated bonds extended into Asia on Wednesday, while gold climbed to a new peak as concerns mounted over government debt and economic growth.

Gold climbed to a new record Tuesday as investors sought out safe havens, while Japan's Nikkei and the Hang Seng pushed higher waiting for Wall Street's return after the Labor Day holiday.

The Indonesia Stock Exchange (IDX) composite index fell as much as 3.6 percent at the open on Monday but clawed back some of the losses to close the day down 1.21 percent at a reading of 7,736 points.

The Indonesia Stock Exchange (IDX) Composite index fell as much as 3.6 percent to 7,551 points at the open on Monday, as a week of political unrest in Jakarta rattled investor sentiment, before trimming losses to 7,612 within 10 minutes of trade.

Widespread destructive protests may be a telltale sign of political instability in Indonesia, foreign businesses worry.

The statement came after multiple days of student protests against lawmakers' pay, with a motorcycle rider died in a violent clash with police on Thursday.

Asian stocks edged higher on Friday, riding a tech-driven rally on Wall Street, with investor focus now turning to a key US inflation reading due later in the day for further clues on the Federal Reserve's rate outlook.

US President Donald Trump moved to fire Federal Reserve Governor Lisa Cook "effective immediately" on Monday, citing allegations of false statements on her mortgage agreements -- as he expanded pressure on the independent central bank.

However, royalties and taxes will still be calculated using the government’s coal benchmark price (HPB) and mineral benchmark price (HPM).

Stocks in Asia edged higher in a shaky start on Friday as anxious traders awaited a speech from Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium.

The United States Food and Drug Administration (FDA) has advised consumers and retailers to “not eat, sell or serve” frozen shrimp imported from an Indonesian company.

Property consultants have pointed to global economic uncertainty and credit hurdles as contributing factors to the sharp drop in home sales in the second quarter of 2025.

After sales of electric two-wheelers plummeted in the first half of 2025, a manufacturers’ association has demanded clarity from the government on purchasing subsidies.

Markets imply around an 85 percent chance of a quarter-point rate cut at the Fed's meeting on September 17, and are priced for a further easing by December.