Asia rebounds after scare from CoreWeave debt: Nikkei +1.8%, Kospi +2.8%

WHAT HAPPENED

The debt of CoreWeave, a U.S. company for AI data centers, raised alarms: its bonds fell to 78 cents on the dollar and the cost of protecting against default rose from 600 to over 1,000 basis points. Asia rebounded on Friday: Nikkei +1.8% and Kospi +2.8%.

WHY IT MATTERS

The fear was not just about CoreWeave: if it has trouble paying, it may reduce purchases of chips and memory. That’s why SK Hynix fell 11.4% and Samsung 10.6%. Memory is also in cell phones and computers, so its prices can ultimately affect the cost of those devices.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, this episode shows two distinct risks in artificial intelligence: the demand for chips and the debt used to build data centers. Although the markets rebounded, companies like Micron and Nvidia remain exposed to sharp changes in expectations, orders, and financing.