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After tumbling 8.2 percent last week as concern over the Greek debt crisis prompted investors to pull money out of emerging markets, analysts say the Jakarta Composite Index will rebound this week, following sentiment-boosting gains on the Dow Jones on Friday.

“I expect the JCI will open positive on Monday and the rupiah will trade stronger following the expected rebound in regional markets after the Dow Jones made its 1.3 percent gain in Friday,” said Janson Nasrial, an analyst at PT AmCapital Indonesia.

The Dow Jones increase was spurred by data showing an improved US employment rate in April, he said. “As 38 states reported their payrolls increased in April, investors are optimistic the US economic recovery is still on track,” Janson said.

Orders for factory goods, sales of new and existing homes and consumer spending probably climbed in April, indicating the US recovery was strengthening before the European debt crisis rattled global financial markets, economists said reports this week may show.

The JCI dove 4 percent in morning trade on Friday before trimming its losses to 2.6 percent, to close at 2,623.22. Foreign investors booked net selling of Rp 2.5 trillion ($270 million) in last week’s trading.

The rupiah, meanwhile, fell as much as 0.4 percent on Friday before recovering to close little changed at 9,295 against the dollar amid intervention by Bank Indonesia. Central bank senior deputy governor Darmin Nasution said on Friday that the bank was not considering capital controls to limit volatility.

Janson said the strong macro-economic conditions and positive sentiment generated by strong first-quarter earnings should again attract foreign buyers to invest in Indonesian companies. Concern over Greece would still weigh on the market but risk aversion would fall as investors differentiated what was happening in Europe from conditions in Indonesia, he said.

Fauzi Ichsan, an economist at Standard Chartered Bank Indonesia, said the European crisis would not have a major impact on the global economy as the countries struggling with debt problems — Greece, Spain, Portugal and Ireland — are not the main drivers of Europe’s economy.

“The European crisis will not be worse than the global crisis in 2008,” he said, adding that most investors would adopt a wait-and-see stance.

Fauzi said he expected the market panic fueled by the Greek situation to slowly die down over the next three weeks, followed by a rebound in commodity prices.

Twenty-two of 41 analysts, or 54 percent, surveyed by Bloomberg, forecast oil will increase through May 28 on speculation stock markets will rebound and the dollar will retreat. Crude oil for July delivery declined $5.39, or 7.1 percent, to $70.04 a barrel last week on the New York Mercantile Exchange.

Norico Gaman, head of research at PT BNI Securities, said foreign investors had pulled some of their funds out of the Indonesian market but had not reinvested them anywhere else yet. If the local market and the rupiah started to go up again they would reinvest in Indonesia, he said.

Commodity stocks will likely be the focus of buying this week after they were sold off last week due to falls in commodity prices, Norico said.