Jakarta. Jakarta Composite Index (JCI) fell sharply on Friday, dropping 2.08% to close at 7,935 as investors reacted to Moody’s negative outlook on Indonesia alongside broad technology-driven sell-offs across Asian and US markets.

The benchmark index traded within a range of 7,861 to 8,025 during the session. Trading volume reached 35.43 billion shares with turnover of Rp 19.67 trillion ($1.16 billion) across more than 2.2 million transactions. Decliners heavily outnumbered gainers, with 646 stocks falling against 107 advancing and 68 unchanged.

Among top gainers, Nusantara Almazia (NZIA) jumped 34.78%, Pelayaran Nasional Purnamasari (ELPI) rose 24.82%, Lion Metal Works (LION) climbed 24.49%, and Indal Aluminium (INAI) advanced 22.03%.

On the losing side, Minna Padi Investama (PADI) dropped 15%, Multi Makmur Lemindo (PIPA) slid 14.94%, Arkora Hydro (ARKO) declined 14.93%, and Sunson Textile (SSTM) fell 14.87%.

Pilarmas Investindo Sekuritas said the JCI’s weakness reflected selling pressure across regional Asian markets, driven by concerns over slowing economic momentum in China and weakening demand ahead of the Spring Festival in mid-February.

In Japan, the Nikkei index faced volatility as investors turned cautious ahead of this weekend’s general election, where expectations are rising for stronger political support for Prime Minister Sanae Takaichi.

“Plans to increase spending and potential tax cuts are raising concerns about Japan’s fiscal outlook, putting pressure on markets and the yen,” Pilarmas wrote in a research note on Friday.

Domestically, sentiment deteriorated further after Moody’s revised Indonesia’s sovereign outlook to negative from stable while maintaining the Baa2 rating. The agency cited declining policy predictability and weakening governance under President Prabowo’s administration, which took office in October 2024.

Market pressure was also linked to Indonesia’s foreign exchange reserves, which fell to $154.6 billion in January 2026 from a nine-month high of $156.5 billion in December.

The decline was mainly driven by government external debt payments and Bank Indonesia’s currency stabilization measures amid rising global financial uncertainty.

Despite the drop, Pilarmas said reserve levels remain very strong, equivalent to financing 6.3 months of imports or 6.1 months of imports and government external debt servicing—well above the international adequacy standard of around three months.

“Bank Indonesia remains optimistic that external sector resilience will be maintained, supported by continued foreign capital inflows,” the firm said.

Across Asia, shares mostly traded lower on Friday, tracking Wall Street losses as technology stocks dragged on sentiment.

Japan’s Nikkei 225 ended up 0.8% at 54,253, led by gains in technology-related stocks such as SoftBank Group and Tokyo Electron. Toyota Motor also rose after announcing a leadership change effective April.

South Korea’s Kospi fell 1.4% to 5,089, pressured by declines in Samsung Electronics and SK Hynix. Hong Kong’s Hang Seng dropped 1.4% to 26,519, while the Shanghai Composite edged down 0.3% to 4,065.

Overnight in the US, the S&P 500 slid 1.2% to 6,798.40, marking its sixth loss in seven sessions. The Dow Jones Industrial Average fell 1.2% to 48,908.72, and the Nasdaq Composite dropped 1.6% to 22,540.59, with technology shares among the hardest hit amid persistent concerns over whether massive AI investments by major tech firms will deliver returns.