Oil Prices Rise, Markets Stay Resilient

RRI.CO.ID, Jakarta - Selling pressure in the bond market continues. The 10-year US Treasury yield rose to around 4.8%, while the US Dollar Index weakened to about 99.5.

During Asian trading hours, the 10-year US Treasury yield stood at around 4.78%, still higher than the previous trading session. Higher US yields continue to put strain on global financial markets.

In Indonesia, strong capital inflows into the bond market are supporting domestic financial assets. The Jakarta Composite Index (IHSG) opened higher at around 6,632, in line with gains across most Asian stock markets.

The IHSG could remain in positive territory during today's session, with a possible test of the psychological level of 6,700. However, rising crude oil prices, which reached around $95.60 per barrel, are raising concerns about further market headwinds.

Geopolitical tensions also remain a key risk for investors. The United States has signalled the possibility of further attacks, while Iran has continued their attacks on several US military facilities in the Middle East.

The Indonesian rupiah also opened stronger at around 17,695 per US dollar. The currency is benefiting from a weaker US Dollar Index and continued capital inflows into Indonesia's financial markets.

Despite the risks, both the IHSG and the rupiah could remain in positive territory today. However, markets remain vulnerable to sudden changes in oil prices and geopolitical developments.

Meanwhile, global gold prices rose to around $4,410 per ounce, equivalent to roughly IDR 2.53 million per gram. Gold is generally not supported by higher oil prices, so technical factors appear to be one of the main drivers behind its latest gains.

Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)