Hong Kong and mainland stocks recouped earlier losses on Tuesday as a selloff in AI-related shares across Asia subsided, but the blue-chip index across the border still finished at its lowest close in more than a year. The benchmark Hang Seng Index edged up 74 points, or 0.3 percent, to 24,345 on turnover of HK$187.57 billion. The tech index fell 32 points, or 0.8 percent, to 4,136 while the China enterprises index inched up six points, or 0.1 percent, to 8,174. On the mainland, the Shanghai Composite Index inched up three points, or 0.1 percent, to close at 3,800 on turnover of 779.3 billion yuan. The blue-chip CSI300 Index recovered some losses to close down 0.3 percent. The Shenzhen Component Index slipped 31 points, or 0.25 percent, to 12,353 on turnover of 896.6 billion yuan while the ChiNext Index reversed hefty morning losses to shed five points, or 0.18 percent, and close at 2,958 on turnover of 449.73 billion yuan. Risk appetite has been weak due to the widening conflict in the Middle East and higher global yields. Soothing the market ⁠anxiety a bit, economists in a poll forecast that China's exports rose 25.5 percent year on year in US dollar terms in September, accelerating from the 25 percent growth in August, sustaining robust ‌momentum despite pressure from some trading partners. The CSI AI Index dropped 0.3 percent after touching a six-month low, and the CSI Semiconductor Index gained 0.5 percent, having lost more than 30 percent from July peaks. Market heavyweight CXMT fell up to 5.3 percent to the lowest level since July despite reports of progress on its memory-chip design before closing nearly 3 percent down. "It's hard to say investors' concerns about the fundamentals of these tech shares are fully priced in, even after the recent sharp correction," analysts at Sinolink Securities ⁠said in ‌a note. With the AI rally also cooling in ‌the US, Chinese tech shares will struggle to rebound in the near term, they said. New energy vehicle stocks dropped after ‌Beijing said it would lower the value-added tax export rebate from April. The announcement was made after China and the European Union reached a deal that could cut Chinese exports of hybrid cars to the ⁠bloc by more than half. The CSI New Energy Vehicle Index ended the session down nearly 3 percent. Other main Asian markets fell sharply on Tuesday as investors fretted about ⁠the durability of the rally in AI shares and increased competition. In Tokyo, the Nikkei fell 1,253 points, or 1.82 percent, to close at 67,777, losing ground for a fourth consecutive session, as a selloff in AI-related stocks gathered pace. The broader Topix rose almost six points, or 0.14 percent, to 4,110. In Seoul, the Kospi plunged 348 points, or 5.46 percent to 6,035, extending its losing streak to a fifth straight day in its longest run of declines since September 2024 and triggering a temporary trading curb amid concerns over rising Chinese memory-chip competition. (Reuters & Xinhua) Edited by Edmond Fong