Asian Stocks Stagnate Amid Escalating Middle East Tensions

Asian stock markets traded cautiously on Wednesday as tensions in the Middle East escalated. The region's oil prices surged, while chip and AI stocks rebounded.

Hong Kong's Hang Seng Index dropped 0.6%, while mainland Chinese blue chips edged up 0.2%. Japan's Nikkei gained 0.6% after a 1.7% decline on Tuesday.

The yen strengthened, nearing its highest level against the dollar since April, as traders anticipated faster interest rate hikes from the Bank of Japan and potential repatriation of Japanese capital.

Oil prices continued their upward trend, with Brent crude futures rising to $99.49 per barrel, a seven-month high.