Business · Markets · 16 hrs ago
Asian stocks rebound after tech sell-off as Indonesia shares plunge
Asian shares rose on Friday after a steep technology-led fall the day before.
The earlier sell-off reflected worries about the debt of US cloud company CoreWeave and the financing behind the AI boom.
Japan’s Nikkei and South Korea’s Kospi recovered some of their losses, while other Asian markets also advanced.
Indonesia’s stock index fell more than 11% after index provider MSCI warned that keeping the country classified as an emerging market may no longer be appropriate.
The warning raised concerns that global investors could pull money out of Indonesian shares.
MSCI is preparing to remove Indonesia from products it tracks, but the warning does not mean that change has already happened.
Market volatility may continue as investors watch upcoming technology company earnings and assess interest-rate prospects.
Asian stocks rebounded on Friday after a technology-led sell-off in the previous session.
South Korea’s Kospi and Japan’s Nikkei rose after sharp falls the day before.
Indonesia’s Jakarta Composite plunged more than 11 per cent after MSCI warned it could downgrade the country’s market status.
The sell-off had been fuelled by concerns about technology shares and the financing behind the artificial intelligence boom.
Market movements varied by source: the reported gains for Japan, South Korea and Hong Kong differed between the articles.
- Who
- Asian stock markets, including Indonesia’s Jakarta Composite.
- What
- Asian stocks rebounded after a technology sell-off, while Indonesia’s market plunged after an MSCI warning.
- When
- Friday, October 16, 2026, following the previous session’s sell-off.
- Where
- Markets across Asia, including South Korea, Japan, Hong Kong and Indonesia.
- Why
- Investors were concerned about technology shares and financing for the AI boom; MSCI warned it could downgrade Indonesia’s market status.
This story does not have two clearly opposing sides.
A sell-off in technology shares dragged Asian markets lower, with South Korea’s Kospi falling 7.6 per cent and Japan’s Nikkei dropping 4.9 per cent, according to BNN Bloomberg.
Wall Street’s S&P 500, Dow and Nasdaq posted gains, according to BNN Bloomberg.
Asian stocks rebounded, while Indonesia’s Jakarta Composite fell more than 11 per cent after MSCI warned its emerging-market classification could become inappropriate.
- Indonesia
- Jakarta Composite fell more than 11 per cent, according to BNN Bloomberg.
- MSCI warning
- Indonesia’s continued emerging-market classification would be “no longer appropriate.
- South Korea
- Kospi rose 2.1 per cent to 5,668.05, according to BNN Bloomberg.
- Japan
- Nikkei 225 rose 1.4 per cent to 65,324.29, according to BNN Bloomberg.
- Market outlook
- Capital.com analyst Kyle Rodda warned of a potentially protracted period of volatility.
3 sources
What people are saying
I’d say the advent of this new technology is probably the most consequential change to the U.S. and the global economy in my lifetime
There really is, I think, a huge benefit to the global economy, the U.S. economy, over the horizon.
Global markets are getting very noisy once again after a period of low volatility: Wall Street is whipsawing, bond yields are swinging, currency markets are doing backflips, and commodity prices are running in multiple directions
Global markets could potentially be in for a protracted period of this sort of volatility