Tech rout eases as oil rallies to five-month peak

Asian equities steadied on overnight trading as the technology sector's recent sharp decline showed signs of abating, offering relief to regional portfolios heavily weighted towards IT stocks. The reprieve came as investors reassessed valuations following weeks of selling pressure across global tech shares.

Oil prices climbed to their strongest level in five months, buoyed by renewed demand expectations and supply concerns. The energy sector's resilience provided support to broader commodity-linked currencies and resource-dependent economies across Asia.

European markets closed slightly lower, with the continent's main indices retreating 0.3% as sentiment remained cautious. However, pressure on eurozone bond spreads eased considerably overnight, with the French-German yield differential moving back from crisis-era levels that had sparked concerns about regional financial stability.

The shift in market dynamics suggests investors are rotating away from the extremes of recent sessions, though analysts cautioned that underlying economic uncertainties remain. Regional central banks are monitoring developments closely as currency and commodity movements feed through to domestic inflation outlooks.