Indonesia Stocks Fall After MSCI Index Cut

That mattered well beyond one cloud-computing company because it hit a market built on heavy capital spending, leverage and increasingly crowded valuations in chipmakers and related suppliers. Analysts also pointed to pressure on memory stocks this week after China's ChangXin Memory Technologies reported progress on a next-generation DRAM architecture, adding another layer of competition to an already fragile sector.

US futures stayed weak, with Nasdaq futures down 0.3% and S&P 500 futures off 0.1%, suggesting investors were not ready to fully buy the dip. The broader message was that volatility is back after a period of calm, with traders juggling AI earnings, Treasury yields and the next signal from major central banks.

Bond markets steadied after Thursday's rush into safe havens pushed yields lower, while the dollar headed for its first weekly loss in five weeks as softer US rates reduced its appeal. Gold eased from Thursday's high, Brent slipped to $105.51 a barrel and West Texas Intermediate fell to $97.43, reflecting a partial unwind of the risk-off move even as geopolitical oil risks remained elevated.

Indonesia was the outlier. MSCI's decision to strip the market from part of its emerging-market universe triggered a rout in the local benchmark and sent the rupiah weaker, threatening outflows from passive funds and active managers benchmarked to global indices.

For investors, that is the key split in the region: the broader Asian growth trade is trying to stabilize after an AI-led shakeout, but Indonesia now faces a structural hit to foreign demand. The next catalysts are tech earnings, central bank remarks at the IMF-World Bank meetings and any further signs that leverage, rather than demand, is driving parts of the AI boom.