Indonesian shares fell 42 points, or 0.7%, to 6,332 in Thursday morning trading, reversing the previous day’s advance as U.S. futures declined after Wall Street closed lower overnight. Surging U.S. Treasury yields heightened inflation concerns and added pressure to risk sentiment. Economists said Bank Indonesia’s September decision to keep benchmark interest rates unchanged for a third consecutive month could represent only a temporary pause, with global yields, volatile oil prices and geopolitical tensions keeping external risks elevated. Domestically, slowing growth, subdued household spending and fragile market sentiment remain challenges, while the rupiah is exposed to renewed dollar strength and foreign outflows. Losses were limited by resilient loan growth, with August lending levels close to a 12-year high. Basic materials, healthcare and property stocks led broad-based declines; Bumi Resources fell 3.1%, Pertamina Geothermal dropped 2.3% and Indika Energi declined 1.8%.