Stocks in Asia generally rose in early Wednesday trading a day after a global tech-led sell-off that renewed concerns that the artificial intelligence-driven equity rally may have run too far.

In Hong Kong, the Hang Seng Index opened up 84 points, or 0.36 percent, at 23,420.

On the mainland, the Shanghai Composite Index was down 0.4 percent at 4,090, while the Shenzhen Component Index shed 0.45 percent at 15,782.

But regional markets shot up, with South Korea's Kospi rebounding a day after suffering its largest one-day point drop on record.

The Kospi shot up 4.6 percent at one point on Wednesday morning, after the benchmark plummeted 10 percent in the previous session on heavy selling of chipmakers SK hynix and Samsung Electronics.

Samsung and SK hynix rose 8.7 percent and 5 percent respectively, allowing Samsung to retake the lead in market capitalisation.

The South Korean government is now discussing plans with both firms for the next phase of large-scale investments in semiconductor production facilities, its chief presidential policy adviser said on Wednesday.

"Exponential and explosive" growth in demand for chips driven by the AI industry will require the two companies to speed up ongoing construction of new facilities by more than 10 years, Kim Yong-beom told a discussion panel.

In Tokyo, the Nikkei 225 was up 0.6 percent before retreating to negative territory.

Elsewhere around the world, a slump in high-flying tech stocks saw Wall Street tumble again on valuation concerns and persistent worries over huge AI outlays.

The tech-rich Nasdaq slumped more than two percent behind big drops in semiconductor shares. Both Micron Technology and Sandisk dove more than 13 percent.

A temporary suspension of US sanctions against Iran during their negotiations also raised hopes that more oil would be hitting the market soon.

Brent North Sea Crude stood at US$76.70 a barrel around 0100 GMT and West Texas Intermediate dropped similarly to US$72.85.

Earlier in the conflict they had soared past the US$110 mark. (AFP/Reuters)



Edited by Raymond Yeung