Nikkei 225 and KOSPI were the best performers in Asia, gaining nearly 2% each on a sharp recovery in tech shares

Most Asian stocks rose sharply on Wednesday, with technology shares leading gains as they rebounded from recent losses.

Australian stocks gained even as stronger-than-expected October inflation data greatly diminished expectations for more rate cuts by the Reserve Bank of Australia.

Nikkei 225 and KOSPI were the best performers in Asia, gaining nearly 2% each on a sharp recovery in tech shares. TOPIX index advanced 1.9%, benefiting from buying into industrials and energy stocks with exposure to the artificial intelligence trade.

Chipmaking, electronics, and data centre stocks rose across the board on renewed hopes that spending on AI will remain strong in the coming quarters.

Japanese tech conglomerate SoftBank Group Corp. soared 6.3%, rebounding from a 2-½ month low after it shed nearly 10% apiece in the last two sessions. Concerns over the company’s exposure to OpenAI, which also faces increased competition from Google, had battered Softbank in recent sessions.

Nvidia supplier Ibiden Co Ltd dropped 5.2% after it was downgraded to Equal Weight by Morgan Stanley, while chip components maker Murata Mfg Co climbed 2.8% after it was upgraded to Overweight.

While concerns over Nvidia’s valuation and circular financing remained, tech shares were encouraged by Alphabet hitting a series of record highs, as the company reportedly prepared its own processors.

Australia’s ASX 200 advanced 0.9%, aided by gains in heavyweight banks and mining stocks even as hotter-than-expected consumer inflation data wiped out bets on more interest rate cuts by the RBA.

CPI inflation rose 3.8% in October, more than expected, while underlying inflation also increased amid soaring rents and electricity prices.

Hong Kong’s Hang Seng index lagged its tech-heavy peers, weighed by a 1.5% drop in Alibaba Group after it reported somewhat mixed earnings for its fiscal second quarter.

Mainland Chinese stocks also logged relatively small gains, with the Shanghai Shenzhen CSI 300 and Shanghai Composite rising 0.8% and 0.1%, respectively.