"With the general election overhang out of the way, we expect the market to gradually move higher in the months ahead to narrow the gap to its regional peers, as concerns over continuity of policies abate, " said Alexander Chia, an analyst at RHB Research.

WSJ: Malaysian Shares Surge After Vote

"Lion Air does have the ambition to become the world's leading low-cost carrier, but the concern is that those narrow bodies are not a good fit for Indonesia, " said Ahmad Maghfur Usman, an analyst for RHB Research Institute who is based in Kuala Lumpur, Malaysia.

WSJ: Lion Air Jet Order Stirs Concern Over Glut in Southeast Asia