Asian markets rebound after CoreWeave debt concerns shake investors
Summarised from 2 outlets · Updated 16 Oct, 04:32 · Archive
Asian stock markets rebounded after sharp falls prompted by concerns over cloud company CoreWeave's debt levels.
Asian stock markets rebounded strongly after sharp falls in the previous session. Heavy selling had been prompted by concerns about cloud company CoreWeave's debt pile, fuelling worries about the financing underpinning the AI boom. CoreWeave shares fell 15.5 per cent on Wednesday after reports that its bond yields had reached levels associated with distressed debt. The shares recovered some ground on Thursday, though the initial sell-off triggered a broad selloff across AI-centred equities globally.
In Asian markets, Japan's tech-heavy Nikkei rose 1.8 per cent after falling almost five per cent the previous day. South Korea's KOSPI climbed 2.8 per cent following a nearly eight per cent plunge. Taiwan's benchmark rose 0.7 per cent and Hong Kong's Hang Seng added 1.1 per cent. Mainland Chinese blue chips edged 0.3 per cent higher. Bond markets stabilised as traders bought safe-haven sovereign debt, whilst the dollar moved towards its first weekly loss in five weeks as lower US yields reduced its appeal.
Indonesia's equity benchmark suffered an 11 per cent slump after MSCI said the country's stock market no longer merited "emerging market" status and is preparing to remove it from products tracked by global investors. The rupiah weakened about 0.8 per cent. US stock futures were mixed, with Nasdaq futures down 0.3 per cent and S&P 500 futures down 0.1 per cent.
How it is being reported
- Asian markets rebound after CoreWeave stock shockSouth Korean and Japanese stock markets have rebounded strongly after sharp falls in the previous trading session.Perth Now · 16 Oct, 04:21
- Asian markets rebound after CoreWeave stock shockSouth Korean and Japanese stock markets have rebounded strongly after sharp falls in the previous trading session.The West Australian · 16 Oct, 04:21
In this story: CoreWeave · Japan · South Korea · Nvidia · MSCI · Indonesia
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