Most Asian stocks rise as calm returns after CoreWeave shock; Indonesia faces market downgrade
SPY•Asian stocks rebounded after a tech-led selloff, with Japan’s Nikkei up 1.9% and South Korea’s KOSPI up 3.3%. Indonesia’s equity benchmark fell 11% after MSCI said the market no longer merited emerging-market status.
1. Asian shares rebound
Asian stocks rose on Friday after heavy selling in the previous session, when concerns about CoreWeave’s debt fueled worries about financing for the AI boom. Japan’s Nikkei gained 1.9%, South Korea’s KOSPI rose 3.3%, Taiwan’s benchmark added 0.3% and Hong Kong’s Hang Seng advanced 1%; mainland Chinese blue chips were little changed.
2. Indonesia slumps
Indonesia’s equity benchmark plunged 11%, its steepest drop since 1998, after MSCI said the market no longer merited emerging-market status. MSCI is preparing to remove the market from products tracked by global investors. Pictet Asset Management investment manager Tan Altundag said the proposal highlighted dissatisfaction with reform progress and could have significant investment implications.
3. Bonds and commodities
Bond markets stabilised after investors bought safe-haven debt on Thursday, pushing yields lower. The dollar index was down 0.3% for the week, while gold rose to around $4,173 an ounce. Brent crude slipped 0.7% to $105.14 a barrel as investors weighed Middle East risks and possible US steps to ease restrictions on some tankers.
