Hong Kong and mainland stocks closed higher on Tuesday, led by AI supply chain shares, as an overnight rally on Wall Street and sliding oil prices lifted risk sentiment across Asia.

The benchmark Hang Seng Index closed 108 points, or 0.4 percent, higher at 24,557 on turnover of HK$178.17 billion.

The tech index rose 43 points, or 1.1 percent, to 4,084 while the China enterprises index crept five points, or 0.1 percent, up to 8,265.

Optical communication giant Zhongji Innolight jumped nine percent while Wuxi AppTec rose up to five percent before paring gains after the Pentagon removed the biotechnology company from its list of Chinese military companies.

Mainland chip firms Suzhou Denglin Technology and Jiangsu Xinde Semiconductor Technology made mixed trading debuts after raising a combined HK$2.36 billion in initial public offerings.

AI chip designer Suzhou Denglin ended HK$18, or 7.79 percent, down at HK$213 while semiconductor packager and tester Jiangsu Xinde was HK$2.52, or 28 percent, up at HK$11.40.

On the mainland, the benchmark Shanghai Composite Index inched up just under three points, or 0.08 percent, to end at 3,663.

The Shenzhen Component Index was 96 points, or 0.86 percent, higher at 11,241 while the ChiNext Index was 35 points, or 1.46 percent, up at 2,494.

Chip supply chain shares across Asia climbed, tracking an overnight rally on Wall Street that saw the Nasdaq jump 2.7 percent.

The 5G Communication Index rose 2.6 percent, leading gains onshore, while the tech-focused Star50 Index was up nearly one percent.

Non-ferrous metal shares edged up 0.1 percent as gold prices rebounded this month on falling oil prices.

The CSI Energy Index fell 2.6 percent, with PetroChina down 6.3 percent.

China's trade surplus surged past US$1 trillion in the first 10 months as a global race to build AI infrastructure buoyed sales of high-tech products and helped offset weak domestic demand, a dynamic likely to sharpen tensions with major trading partners.

In Tokyo, the Nikkei climbed up by 1,684 points, or 2.87 percent, to end at 60,459, extending its rebound from a tech-led selloff on Friday as AI-related stocks surged.

The broader Topix was up 75 points, or 1.98 percent, at 3,893.

In Seoul, the Kospi closed up 220 points, or 4.39 percent, at 5,239 in a sharp rebound from nine-month lows as chipmakers tracked overnight gains in US tech stocks. (Agencies)



Edited by Tony Sabine