Asian stocks mostly rose on Friday, recovering from a technology-driven sell-off a day earlier, while Indonesian shares plunged after global index provider MSCI warned it could downgrade the country’s market status.
MSCI said Indonesia’s continued classification as an “emerging market” would “no longer be appropriate,” raising concerns about potential capital outflows.
US stock futures edged higher after Federal Reserve Chair Kevin Warsh said artificial intelligence could deliver substantial benefits to the US and global economies.
South Korea’s benchmark Kospi surged 3.6% after dropping 7.6% on Thursday. Samsung Electronics gained 4.2%, while SK Hynix rose 3.5%.
Japan’s Nikkei 225 climbed 1.9% to 65,658.59 after losing 4.9% the previous day. SoftBank Group advanced 1.7%, Tokyo Electron rose 2.8% and Kioxia Holdings gained 3.2%.
Technology shares across Asia recovered as losses in US artificial intelligence stocks eased. Speaking at the IMF and World Bank meetings in Bangkok, Warsh described AI as one of the most consequential changes to the US and global economies during his lifetime, saying the technology could generate significant economic benefits.
Taiwan’s Taiex gained 0.6%, although shares of Taiwan Semiconductor Manufacturing Co. (TSMC) fell 0.4% despite the company reporting record quarterly profits on Thursday and saying demand for AI remained strong.
Indonesia’s Jakarta Composite index plunged more than 10%, reaching its lowest level in years following MSCI’s warning.
Hong Kong’s Hang Seng rose 1.2% to 24,353.69, while Shanghai’s Composite index gained 1% to 3,742.66. Australia’s S&P/ASX 200 advanced 1.1% to 8,812.90, and India’s Sensex edged up 0.2%.
On Wall Street on Thursday, the S&P 500 gained 0.3%, the Dow Jones Industrial Average rose 1.1% and the Nasdaq Composite added 0.1%.
AI and chip stocks showed mixed performances. AI cloud provider CoreWeave, which fell as much as 9.5% early in the session, recovered to finish 5.9% higher. Nvidia ended 1.8% lower after falling as much as 3.8% earlier. Broadcom lost 0.6%, while Advanced Micro Devices declined 1.5%.
Oil prices steadied but remained elevated as global supplies faced pressure amid the absence of a deal between the US and Iran to end their war.
The International Energy Agency said on Thursday that its members had agreed to release the remaining roughly 100 million barrels covered by their March pledge in a timely manner. The total release is expected to exceed the initially planned 400 million barrels.
Brent crude, the international benchmark, fell 0.4% to $105.46 a barrel, still well above the roughly $72 level recorded in late February before the war began.
ING commodities strategists Warren Patterson and Ewa Manthey said in a commentary on Friday that uncertainty over the Middle East and concerns about oil shipments through the Strait of Hormuz had left the market pricing in a substantial risk premium.
The US dollar slipped to 157.83 Japanese yen from 158 yen, while the euro rose to $1.1228 from $1.1220.