Jakarta. Indonesia's benchmark stock index opened with a near-1 percent fall on Thursday morning, after stocks in China fell 7 percent in less than half an hour into trading which led to a trading suspension.

The Jakarta Composite Index, or JCI, dropped 0.94 percent to 4,565.67 on Thursday, after a two-day rally. The LQ45 index, which tracks the country's 45 most traded stocks, plunged 1.25 percent to 792.13.

This is the second time the index has taken a hit from investors' risk-off mood in fears over China's economy less than a week into the new year, seemingly confirming concerns of fund managers and analysts on the magnitude of potential affects on the local stock market for the year.

The Shanghai Composite Index slumped 7 percent to 3,115.89 on Thursday, parallel to a decline in the Chinese yuan currency which reached its lowest level since February 2011, according to reports by Reuters.

The fall was later followed by trading suspensions by regulators for both the Shanghai and Shenzhen markets for the rest of the trading day, Reuters reported.