Asian stocks rebounded on Friday after a tech selloff tied to questions about CoreWeave's debt. Indonesia's benchmark went the other way, sliding 11% after MSCI said the market no longer merited emerging market status.
Asian stocks rebounded on Friday after investors dumped tech shares in the previous session. Questions about cloud company CoreWeave's debt pile had fuelled worries about the financing driving the AI boom.
Indonesia was the exception. Its equity benchmark slumped 11%, the most since 1998, after MSCI said the stock market no longer merited emerging market status.
Indonesia faces an MSCI cut
The index provider is preparing to cut the Southeast Asian market from a suite of products tracked by global investors, a setback likely to send money fleeing. Tan Altundag, investment manager for emerging equities at Pictet Asset Management, said: "The investment implications could be significant".
Tech-heavy markets recover part of their losses
Japan's tech-heavy Nikkei rose 1.9%, making back some of Thursday's almost 5% tumble. South Korea's KOSPI climbed 3.3% after a nearly 8% plunge.
Elsewhere, Taiwan's benchmark rose 0.3% and Hong Kong's Hang Seng added 1%. Pan-European STOXX 50 futures advanced 0.7%, while Nasdaq and S&P 500 futures were each 0.2% higher.
Bonds, gold and oil react
Bond markets stabilised after yields plunged on Thursday as traders bought Treasuries and other safe haven sovereign debt. Gold extended Thursday's highs, inching up to around $4,173, while Brent crude futures eased 0.7% to $105.14 a barrel.
Federal Reserve Chair Kevin Warsh voiced optimism about US economic strength but gave away little on chances for a rate hike this month, repeating that he does not prejudge meetings.
Source: Reuters via Investing.com
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