Asian shares have inched higher as those related to artificial intelligence found respite after a selloff, while any gain was tempered by elevated oil prices and caution ahead of US inflation data later in the global day.
Among firms in the AI supply chain, chipmakers Samsung Electronics and SK Hynix rose more than two per cent in South Korea while Kioxia was steady in Japan, recovering some of the previous session's loss.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5 per cent after US stocks ended the previous session with a mild loss. Japan's Nikkei rose 0.2 per cent on Wednesday and South Korea's Kospi added 1.8 per cent.
Sentiment remained cautious, however, with oil prices elevated as concern over energy supplies intensified following Houthi missile and drone attacks on Saudi Arabia.
US crude ticked up 0.8 per cent to $US94.96 a barrel. Brent crude rose to $US106.6.
"After yesterday's chip-led sell-off in the region ... market participants will be gauging whether shakiness across major indices eases. The geopolitical situation globally and the impact on energy markets won't help," said analyst Kyle Rodda at Capital.com.
In another sign of risk aversion, longer-dated bonds rallied as investors sought safety. The yield on benchmark 10-year Treasury notes was steady at 5.221 per cent after touching its lowest in nearly two weeks, while that on 30-year notes held at 5.569 per cent following a three-day decline.
On Wall Street overnight, US bank stocks lost ground after mixed quarterly earnings results from Citigroup and peers, weighing on broader markets.
US stock futures, the S&P 500 e-minis, were up 0.04 per cent at 7,858.8.
Market participants were awaiting US consumer price index data on Wednesday, hoping to extract clues on the Federal Reserve's interest-rate outlook.
On average, economists estimated headline inflation accelerated to an annual 3.6 per cent in September due to rebounding energy prices, with the core CPI rising 0.2 per cent on a monthly basis.
"The risk is the core CPI surprises to the upside because of strong consumer demand and higher costs, pushing up market pricing of an October Fed hike and the USD," said currency strategist Carol Kong at Commonwealth Bank of Australia.
Investors priced in a 22 per cent chance of an October interest rate hike ahead of the CPI data, the CME FedWatch Tool showed.
New York Federal Reserve President John Williams said the Fed may need to raise its policy rate once more this year to slow inflation, but that he sees no need for hikes in 2027.
The dollar index, which tracks the greenback against the currencies of some major trading partners, was down at 102.17. The euro was little changed at $US1.1202.
Market participants were also awaiting Chinese inflation data on Wednesday, looking for signs of reviving domestic demand amid deflationary pressure.