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The Jakarta Composite Index roared back with a 4.1 percent gain on Monday and the rupiah strengthened the most since September as a bailout of Greece reassured investors and concerns faded over Finance Minister Sri Mulyani’s surprise resignation last week, prompting international buyers to return to emerging markets, analysts said.

The JCI rose 111.09 points to close at 2,850.43, its biggest gain since June 24. It fell 7.8 percent last week as investors took shelter from market uncertainty.

“Europe’s bailout of Greece on Saturday was the main factor prompting buying of local stocks,” said Bayburs Alfaris, a trader at PT Kim Eng Securities.

The European Union and International Monetary Fund over the weekend agreed upon a 750 billion euro ($972.6 billion) bailout to keep euro-zone economies from being infected by Greece’s debt.

Bayburs called the JCI’s surge a pragmatical rebound as its steep drop last week was mainly caused by concerns events unfolding in Europe.

The rupiah rose 0.2 percent to 9,075 against the dollar on Monday, compared with 9,225 on Friday. Government bonds rose, pushing the yield on the 10-year note down by the most in seven weeks.

Mohammad Alfatih, an analyst at PT Samuel Sekuritas Indonesia, said rising domestic economic growth and indications of easing political tensions also supported the market on Monday.

Indonesia’s economy expanded 5.7 percent in the first quarter from the year-earlier period after gaining 5.4 percent in the previous quarter, the Central Statistics Agency (BPS) said on Monday.

“The appointment of [Golkar Party chairman] Aburizal Bakrie as the chairman of the coalition was a sign that the current political battle would cool down,” Mohammad said, pointing to the political strife between Yudhoyono’s Democratic Party and Golkar over the ongoing Bank Century bailout investigation, which could put Vice President Boediono and Sri Mulyani in jeopardy.

Alfaris said Bakrie stocks became the focus of buying on Monday after moving nowhere since April on concerns about an Rp 2 trillion tax evasion case targeting it coal mining firms.

The seven Bakrie stocks outperformed the market with an average gain of 7 percent on Monday, with coal giant PT Bumi Resources climbing 7.6 percent.

Overall, mining stocks led the JCI’s gain, rising 5.1 percent.

Rising crude oil prices, trading at $78.51 a barrel for June delivery up from $75 a barrel on Friday, also boosted sentiment in mining stocks. The banking sector also supported the index.

Purwoko Sartono, an equity analyst at PT Panin Sekuritas, expected the JCI to rebound further today, though global markets are still closely watching developments in the Greek debt crisis.

Sri Mulyani on Monday told reporters that Greece’s financial “turbulence” must be carefully monitored, but expected that Indonesia’s economic growth momentum would not be disrupted.