Asian stocks made a cautious start to trading on Tuesday as uncertainty over whether the ceasefire in the Middle East conflict would hold dampened renewed optimism around artificial intelligence.

In Hong Kong, the benchmark Hang Seng Index opened down three points at 25,395 before shooting up 349 points, or 1.38 percent, at 25,747 at one stage in mid-morning trading.

The China Enterprises Index was three points, or 0.04 percent, higher at 8,511 at the opening before, like the benchmark, jumping 177 points to 8,685 later.

The tech index was up 176 points, or 3.55 percent, at 5,141, at one stage in mid-morning trading after opening up 31 points, or 0.62 percent, at 4,995.

On the mainland, the Shanghai Composite Index opened up three points, or 0.09 percent, at 4,061.

The Shenzhen Component Index was up 70 points, or 0.46 percent, at 15,410 while the ChiNext Index was up 36 points, or 0.92 percent, at 3,987.

In Tokyo, the Nikkei's losses accelerated to 1,203 points, or 1.8 percent, to be at 65,730 at one stage before midday after opening for the day down 304 points, or 0.46 percent, at 66,629.

In Seoul, the Kospi plunged into the red to be 263 points, or 3 percent, at 8,524 at one stage before noon after opening up 94 points, or 1.08 percent, at 8,883.

"Conflicting news coming out of the Middle East left markets whipsawing, with Iran stating that negotiations with the US have been suspended, only for (US) President Donald Trump to follow up in recent hours with reassurances that talks are continuing 'at a rapid pace'," analysts from Westpac wrote in a research note.

Brent crude held steady around US$95 a barrel after Lebanon announced a partial ceasefire between Hezbollah and Israel on Monday, which could clear the path for renewed efforts to end the three-month war between the United States and Iran.

"That the equity market is in boom mode is not up for debate," despite higher energy prices and surging real interest rates, said David Rosenberg, founder and president at Rosenberg Research in Toronto, in a note to clients.

"The S&P 500 is now up nine weeks in a row, a streak we last witnessed in late 2023."

AI suppliers in Asia made gains after AI developer Anthropic said it had confidentially filed for a US initial public offering, which could draw a trillion-dollar valuation.

Alphabet shares slipped 0.7 percent after the tech giant said it is looking to raise US$80 billion in equity offerings, including an investment from Berkshire Hathaway, in an aggressive push to fund expansion of its AI infrastructure. (Xinhua & Reuters)



Edited by Raymond Yeung