Portugal Colonial - Asian stocks track Wall St tech bounce, oil eases on Mideast hope

The gains across most equity markets followed a rebound on Wall Street fuelled by a race to pick up cheaper assets following a sell-off sparked by bets on a US interest rate hike and warnings over tech firms' valuations.

News that the US economy had created more than double the number of jobs than expected in May indicated it remained in rude health but put pressure on the Federal Reserve to tighten monetary policy as it also battled surging inflation.

That came after disappointing revenue forecasts from chip giant Broadcom had sparked jitters about the AI sector, which has helped drive markets to record highs this year.

A plunge in tech firms in New York on Friday was followed by a similar collapse for their Asian counterparts on Monday, sending Seoul's Kospi down more than eight percent.

However, analysts said the selling was largely driven by profit-taking and could be seen as a healthy pause in a rally that has run since March.

And on Tuesday, Asian investors tracked a bounce for the Nasdaq and S&P 500.

The Kospi piled on more than three percent, while Taipei added almost two percent, with Tokyo, Shanghai, Singapore, Manila and Wellington also up. Hong Kong was flat and Sydney edged down.

"Expectations of tighter monetary policy, combined with underwhelming results from Broadcom last week, raised questions over the pace of the sector's rally and prompted investors to take profits," wrote Fiona Cincotta at City Index.

"This is by no means the end of the AI trade, but it does suggest that valuations had become stretched in parts of the market."

Investors also took heart from news that Iran and Israel said Monday they had halted hostilities after exchanging strikes that threatened to reignite the Middle East war.

Israeli Prime Minister Benjamin Netanyahu announced that the "fire on that front is contained" hours after Tehran said it had stopped its military action.

Tehran launched missiles at Israel on Sunday over Israel's ongoing war against Hezbollah in Lebanon. Israel then struck back, despite efforts by US President Donald Trump to dissuade Netanyahu. That triggered another round of Iranian missiles, before Tehran announced it would cease fire.

Fears had grown that the flare-up would put at risk Tehran's truce with the -- in place since April 8 -- and ruin efforts for peace talks to reopen the Strait of Hormuz, through which a fifth of global crude usually passes.

Oil prices, which had spiked more than five percent earlier Monday, pare earlier gains, and on Tuesday they were down.

Eyes are now turning to the release on Wednesday of US inflation, which could play a key role in the Fed's rate decision-making. The consumer price index is expected to hit 4.2 percent, a more than three-year high.

- Key figures at around 0210 GMT -

Tokyo - Nikkei 225: UP 1.0 percent at 64,642.31

Hong Kong - Hang Seng Index: FLAT at 24,649.98

Shanghai - Composite: UP 0.3 percent at 3,971.53

West Texas Intermediate: DOWN 0.4 percent at $90.39 a barrel

Brent North Sea Crude: DOWN 0.3 percent at $93.98 a barrel

Euro/dollar: UP at $1.1540 from $1.1531 on Monday

Pound/dollar: UP at $1.3351 from $1.3341

Dollar/yen: DOWN at 160.19 yen from 160.21 yen

Euro/pound: DOWN at 86.43 pence from 86.44 pence

New York - DOW: DOWN 0.2 percent at 50,786.01 (close)

London - FTSE 100: UP 0.1 percent at 10,373.20 (close)

F.Moura--PC