Asian stock markets were hit by a rout on Tuesday that followed a tech-led sell-off on Wall Street with investors again questioning a long-running AI-fuelled boom, while oil extended losses on peace talk optimism.

In Hong Kong, the benchmark Hang Seng Index plunged 432 points, or 1.8 percent, to 23,336 on turnover of HK$334.36 billion.

The tech index dived 150 points, or 3.3 percent, to 4,399 while the China enterprises index fell 155 points, or 2 percent, to 7,759.

On the mainland, the Shanghai Composite Index ended 56 points, or 1.37 percent, down at 4,106 on turnover of 1.59 trillion yuan.

The Shenzhen Component Index plunged 518 points, or 3.17 percent, from a peak of more than 10 years to 15,854 on turnover of 1.85 trillion yuan while the ChiNext fared even worse by diving 167 points, or 3.84 percent from a record high to close at 4,192 on turnover of 901.64 billion yuan.

In Tokyo, the Nikkei share average fell 2,565 points, or 3.6 percent, to 69,788 to a one-week low, retreating after a strong rally that had driven the index to successive record highs, prompting investors to lock in profits.

In Seoul, the Kospi plummeted 910 points, or 9.99 percent, its steepest drop in more than three months, to end at 8,203 as overseas investors sold chipmakers following regulatory signals that the sector's rally had gotten overheated.

Market bellwether Samsung Electronics and peer SK Hynix shed more than 12 percent each, wiping out billions in market value and triggering an automatic 20-minute bourse-wide trading halt in the afternoon.

"The move appears to reflect South Korean semiconductor stocks having risen too far, too fast, prompting aggressive selling by both foreign investors and domestic institutions," said Joo Won, head of the economic research division at Hyundai Research Institute.

"The scale of the decline also appears excessive. More importantly, the sell-off could signal that investors are beginning a broader process of reducing their positions. In other words, there may still be considerable selling pressure waiting in the wings.

"Having accumulated sizable gains during the rally, many investors could be inclined to cash out first and reassess later." (Agencies/Xinhua)



Edited by Tony Sabine