Emerging market equities rebounded on Friday, lifted by a pullback in oil prices and easing concerns over whether the AI investment boom can be sustained.

The MSCI Emerging Markets Index climbed as much as 0.5%, halting a two-day slide. Even so, the gauge remained on track for a second consecutive weekly decline, weighed down earlier in the week by higher crude prices, rising US Treasury yields, and a stronger dollar.

Risk appetite received a boost after reports suggested OpenAI could reach or exceed $70 billion in annualized revenue by the end of the year, easing worries that its sales would fall short of prior expectations.

Charu Chanana, chief investment strategist at Saxo Capital Markets in Singapore, said the bigger question is whether that revenue can support the massive spending on AI infrastructure and the increasingly steep financing costs behind it. "The revenue story may still hold, but the return logic remains to be proven," she said.

Falling oil prices also provided support. US President Donald Trump said the United States "won't attack Iran at any time" before the November midterm elections, and crude fell as much as 1.7% on Friday. Stocks in major oil-importing countries such as the Philippines and India advanced.

Chinese equities rallied sharply on speculation that regulators intervened to curb the market's decline. Most Asian currencies strengthened in tandem, with the Thai baht leading regional peers amid rising gold prices. India's central bank continued to prop up the rupee by selling dollars, with the currency hovering near record lows. The MSCI Emerging Markets Currency Index was little changed.