Mainland stocks gave up gains earlier in the day to close at a 14-month low on Tuesday, with tech shares resuming their decline after a brief rise on an uptick in sentiment in the region.

In Hong Kong, the benchmark Hang Seng Index fell 170 points, or 0.7 percent, to 23,041 on turnover of HK$178.35 billion.

The tech index was down 57 points, or 1.5 percent, at 3,800 while the China enterprises index slipped 35 points, or 0.5 percent, to 7,766.

Up north, the Shanghai Composite Index closed down 49 points, or 1.33 percent, at 3,648 on turnover of 672.4 billion yuan while the blue-chip CSI300 Index was also 1.3 percent lower.

The Shenzhen Component Index fell 288 points, or 2.5 percent, to close at 11,245 on turnover of 788.5 billion yuan while the ChiNext Index dived 90 points, or 3.41 percent, to 2,548 on turnover of 381.58 billion yuan.

Shanghai's tech-focused Star50 index slumped 4.8 percent to the lowest since March.

The selloff in Chinese AI-related shares, however, continued, with the CSI Semiconductor Index down 5.8 percent at a fresh six-month low and the CSI AI Index down nearly four percent.

"The market may stage a short-term rebound after the recent selloff, but a more sustained recovery could require further de-leveraging over the medium term as some crowded positions have yet to be fully cleared," analysts at Sinolink Securities said in a note.

China's central bank said on Monday it had decided to establish a swap facility to provide emergency liquidity to non-bank financial institutions facing large-scale redemptions.

"The establishment of such facilities to address large redemptions at non-bank financial institutions could keep short-term liquidity conditions accommodative," Huajin Securities analysts said in a note.

Elsewhere, data released on Tuesday showed China's industrial profits grew at a faster pace in September, but the sectoral divide remained pronounced.

Around the region, Asian stocks climbed as AI firm Anthropic's eagerly anticipated IPO filing lifted risk appetite ahead of tech earnings that will be a test for the AI trade, and central bank meetings that will influence near-term interest rates.

In Tokyo, the tech-heavy Nikkei share average rebounded 1,078 points, or 1.73 percent, to close the day at 63,268 after paring an earlier gain of more than two percent.

The broader Topix rose 24 points, or 0.61 percent, to 3,997.

In Seoul, the Kospi closed up 168 points, or 3.09 percent, at 5,638 after rising up to 4.9 percent during the session.

"The market may stage a short-term rebound after the recent selloff, but a more sustained recovery could require further de-leveraging over the medium term as some crowded positions have yet to be fully cleared," analysts at Sinolink Securities said in a note.

China's central bank said on Monday it had decided to establish a swap facility to provide emergency liquidity to non-bank financial institutions facing large-scale redemptions.

"The establishment of such facilities to address large redemptions at non-bank financial institutions could keep short-term liquidity conditions accommodative," Huajin Securities analysts said in a note.

Elsewhere, data released on Tuesday showed China's industrial profits grew at a faster pace in September, but the sectoral divide remained pronounced, with the CSI Semiconductor Index down 5.8 percent at a fresh six-month low and the CSI AI Index down nearly four percent. (Reuters/Xinhua)




Edited by Tony Sabine