Asian markets recovered some of the losses suffered in a morning sell-off Tuesday but investors remain on edge ahead of a key Federal Reserve policy meeting, reports AFP from Hong Kong.

News of a massive data breach at Facebook fuelled fears of a regulatory crackdown on the technology sector, sparking plunges in New York Monday.

The scandal at the social media giant further fuelled anxiety among investors already fretting over possible US interest rate rises and Donald Trump's protectionist rhetoric, which has sparked talk of a global trade war.

Reports said Cambridge Analytica, the analysis firm hired by Donald Trump's 2016 presidential campaign, stole data from 50 million Facebook user profiles to help design software to predict and influence voters' choices.

Stephen Innes, head of Asia-Pacific trading at OANDA, warned: "This security breach could end up being a

significant turning point for the social media and network portal."

The news hammered tech giants, with Facebook plunging 6.8 per cent while other household names were also hit -- including Apple, Google-parent Alphabet and Netflix -- by regulatory concerns.

"The adults are starting to realise that the altruistic kids who started some of these tech behemoths are either unwilling or unable to deal with the fact that the companies they wrought and thought were a force for good can be

manipulated by those who seek to do ill," said Greg McKenna, chief market strategist at AxiTrader.

The US losses filtered through to Asia in early trade but tech firms in the region bounced back as the day wore on. Hong Kong-listed internet giant Tencent and AAC Technologies moved into positive territory, as did Samsung in Seoul. However, while Sony pared losses in Tokyo it ended lower.

Broader markets were mixed, having all started down. Japan's Nikkei dipped 0.5 per cent and Sydney slipped 0.4 per cent.