HONG KONG, Nov 3 — Asian stock markets struggled Tuesday following another AI-fuelled tech selloff on Wall Street that overshadowed a possible breakthrough in talks to end the Middle East war.

However, oil prices clawed back some of Monday’s plunge in oil prices following a report that US forces had struck an Iranian island in the Strait of Hormuz.

Investor fears about the vast sums being invested in the artificial intelligence complex have cast a pall over trading floors in the second half of the year, with many questioning firms’ profitability.

Earnings reports from titans including Amazon, Alphabet, Meta and Microsoft have shown they will keep pouring hundreds of billions of dollars into data centres and chips even as investors grow impatient for returns.