Global Markets Today, October 16, 2026: Asia Rebounds After AI Sell-Off, Oil Prices Remain Elevated; Indian Shares May Open Higher

Mumbai, October 16: Asian markets rebounded on Friday after a sharp sell-off in technology stocks in the previous session, as easing bond yields helped investors return to riskier assets. However, persistent concerns over the sustainability of artificial intelligence (AI) investments kept sentiment fragile, while elevated crude oil prices remained a potential headwind for Indian equities. 

Asian Markets Today 

Asian stocks recovered on Friday, with Japan’s Nikkei (up 1.7%), South Korea’s KOSPI (3.2%) and Taiwan’s benchmark index (0.6%) gaining ground after Thursday’s technology-led rout. The rebound followed a sharp reassessment of the AI trade, triggered by concerns over mounting debt and the returns on massive investments in data centres and computing infrastructure. 

Indonesia’s stock market JSX Composite Index, however, plunged 10% after index provider MSCI downgraded the country from emerging-market status, adding to regional uncertainty. 

Investors also tracked movements in government bond yields and currencies. The US dollar remained on course for a weekly decline, while the euro and British pound edged higher. Gold and crude oil prices eased marginally, although energy prices remained elevated amid geopolitical risks and uncertainty over potential changes to US sanctions on oil tankers. 

US Markets: AI Rout and Debt Concerns in Focus 

Concerns that higher interest rates could make it more expensive for technology companies to finance their AI infrastructure investments weighed on sentiment. 

Cloud computing company CoreWeave remained at the centre of the sell-off because of its substantial debt burden. Shares of Oracle and major chipmakers, including Nvidia, Micron Technology and Advanced Micro Devices, also came under pressure. Taiwan Semiconductor Manufacturing Company added to investor caution after flagging macroeconomic uncertainties in its outlook for 2027, despite reporting another record quarterly profit. 

The rout followed hotter-than-expected US inflation data, which strengthened concerns that the Federal Reserve could keep interest rates higher for longer or consider further increases. Rising borrowing costs could undermine valuations of high-growth technology companies and raise questions about the profitability of the AI investment boom. 

However, US markets subsequently recovered some ground on Thursday, with the Dow Jones Industrial Average and S&P 500 closing higher, while the Nasdaq Composite posted a modest gain. 

Crude Oil Prices Today 

Oil prices retreated slightly, with Brent crude around $105.51 per barrel and US West Texas Intermediate crude at $97.3. Nevertheless, prices remained elevated as investors assessed geopolitical risks in the Middle East, potential supply disruptions and possible changes to US restrictions on oil shipments. 

For India, persistently expensive crude remains a concern because the country relies heavily on imported oil. Higher prices can pressure the rupee, widen the import bill and complicate the inflation and interest-rate outlook. 

Indian Stock Market Opening Outlook 

Indian equities are likely to open higher on Friday, taking cues from the rebound across Asian markets and a recovery in domestic sentiment. 

However, the recovery may remain vulnerable to renewed volatility. Elevated oil prices, continued foreign investor selling and uncertainty surrounding US interest rates could limit the upside, even as improving global technology sentiment offers some support. 

Source

•  Exchanges