Asian stocks rebound from the tech rout while Indonesia plunges 11%
Seoul and Tokyo recover as chipmakers bounce; an MSCI downgrade warning hits Jakarta hard.
Asia · Friday, October 16, 2026 · 6:15 AM ET
Most Asian stocks bounced on Friday after Thursday's tech rout, led by chipmakers in Seoul and Tokyo. Indonesia was the exception: its main index plunged about 11% after index provider MSCI said the market no longer deserves "emerging market" status (Reuters, AFP, AP).
Seoul and Tokyo claw back
AFP said Tokyo's Nikkei 225 closed up 1.4% at 65,324.29 and Seoul's Kospi closed up 2.1% at 5,668.05. Earlier in the session Reuters had them up 1.9% and 3.3%. Both had fallen sharply on Thursday: AFP put the drops at 4.9% and 7.6%, and Reuters called them "almost 5%" and "nearly 8%". Chipmakers SK hynix and Kioxia led the rebound, AFP said. Hong Kong's Hang Seng and Shanghai's Composite also rose, with AFP showing gains of 0.3% and 0.2%. Paris and Frankfurt opened higher, and London fell (AFP).
The rebound followed a bounce on Wall Street. AFP said Nvidia chief Jensen Huang lifted spirits on Thursday by defending CoreWeave, saying "CoreWeave's strength is improving every day." CoreWeave shares climbed almost 6%, AFP reported. For the background, see our CoreWeave story and yesterday morning report on the Asian rout.
Indonesia's worst day since 1998
Reuters and AFP said Jakarta's benchmark fell about 11%, its biggest drop since 1998. MSCI said on Thursday that "significant concerns remain around market dysfunction, including continued suspected coordinated trading behavior and lack of evidence of meaningful enforcement," according to CNBC TV18. CNBC TV18 said MSCI is consulting on reclassifying Indonesia as a standalone market, and Reuters said it is preparing to cut the country from a suite of products tracked by global investors. AFP said the index provider had earlier cited "ongoing opacity in shareholding structures" and coordinated trading.
"The investment implications could be significant," Pictet Asset Management's Tan Altundag told Reuters, who added he has no holdings in Indonesia.
Other markets
Brent crude was near $105 a barrel, down about 0.7% (Reuters, AFP). Reuters said the dollar was heading for its first weekly loss in five weeks as lower U.S. yields reduced its appeal. Kyle Rodda of Capital.com told clients, per Reuters, that global markets "could potentially be in for a protracted period" of volatility.