China, Hong Kong stocks recover losses as tech share selloff wanes 

HONG KONG, Oct 13 (Reuters) - China and Hong Kong stocks recouped earlier losses on Tuesday as a selloff in AI-related shares across Asia subsided, but China's blue-chip index still finished at its lowest close in more than a year.

** The Shanghai Composite Index .SSEC ended up 0.1%, after falling as much as 1.4% in the morning session to a three-month low. The blue-chip CSI300 Index .CSI300 recovered some losses to close down 0.3%.

** In Hong Kong, the benchmark Hang Seng Index .HSI swung to a gain of 0.3% at close, but the Hang Seng Tech Index .HSTECH remained in the red, down 0.8%.

** Risk appetite has been weak due to the widening conflict in the Middle East and higher global yields.

** Asian stocks fell sharply on Tuesday as investors fretted about the durability of the rally in AI shares and increased competition.

** Japan's Nikkei index .N225 fell as much as 2.8% before recovering some losses while South Korea's benchmark KOSPI index .KS11 plunged 7% at one point before closing down 5.5%.

** Soothing the market anxiety a bit, economists polled by Reuters forecast that China's exports rose 25.5% year-on-year in US dollar terms in September, accelerating from the 25% growth in August, sustaining robust momentum despite pressure from some trading partners.

** Shanghai's tech-focused STAR50 Index .STAR50 and the startup board ChiNext Composite Index .CNT both reversed hefty morning losses.

** The CSI AI Index .CSI930713 dropped 0.3% after touching a six-month low, and the CSI Semiconductor Index .CSI931865 gained 0.5%, having lost more than 30% from July peaks.

** Market heavyweight CXMT 688825.SS fell as much as 5.3% to the lowest level since July despite reports of progress on its memory-chip design. The stock closed down 3%.

** "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 (NEV) stocks dropped after China said it would ​lower the ‌value-added tax export rebate from ​April next year. 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 .CSI399976 ended the session down nearly 3%.