Asian Stocks Waver Amid Middle East Tensions and Rising Oil Prices

Asian stocks wavered on Tuesday as investors weighed Middle East tensions and the potential impact of AI development, while oil prices and bond yields continued to rise ahead of key central bank meetings.

The Yemen Houthi rebels launched a new attack on Saudi Arabia on Monday, which could disrupt up to 4% of global oil supply. The move kept markets on edge, with U.S. crude rising 1.27% to $102.68 a barrel and Brent up 1.21% to $106.96 per barrel.

Analyst Yokoo Akihiko at Mitsubishi UFJ Bank noted that 'markets are likely to remain focused on the risk that higher crude oil prices could add to inflationary pressures and, in turn, push interest rates higher.'