Most Asian stocks rise as calm returns after CoreWeave shock; Indonesia faces market downgrade

Asian stocks experienced a rebound on Friday, after experiencing significant losses the previous day due to concerns surrounding tech company CoreWeave's substantial debt. Bond markets also showed signs of stability, with yields dropping on Thursday as investors flocked to safer Treasury and sovereign debt options. The US dollar saw a slight decline, losing some of its weekly gains, while gold prices experienced a small pullback following a previous surge.

Brent crude oil prices, meanwhile, edged closer to the $105 mark. Japanese tech-focused Nikkei gained 1.8%, recovering from a near 5% drop earlier in the week. South Korea's KOSPI index rebounded 2.8%, following a 8% decline. Taiwan's stock index edged up by 0.7%, while Hong Kong's Hang Seng Index increased by 1.1%. Chinese mainland blue chips managed to increase by 0.3%.

However, Indonesia's main stock index fell by 11% after the MSCI downgraded the country's stock market from "emerging market" status, signaling a potential reversal in investor sentiment. The Indonesian rupiah weakened by approximately 0.8% against the dollar, closing at 95.0550 per dollar. US stock futures were in the red, with tech-heavy Nasdaq futures falling 0.3% and S&P 500 futures down 0.1%.

Analysts suggest that the recent market turbulence might persist as investors await tech company earnings releases and try to forecast the trajectory of US and other major economies' interest rates. The upcoming Federal Reserve Chair, Kevin Warsh, will participate in IMF-World Bank Annual Meetings in Bangkok, but his demeanor may make it difficult for market participants to glean actionable insights.