Oil prices rose and bonds were sold on Wednesday as renewed fighting in the Middle East and US sanctions on Iranian oil threatened the ceasefire.

Equities in Asia also suffered, with the fresh US-Iran tensions coming on top of a retreat from the tech sector that has powered markets to multiple record highs over the past two years.

Seoul's Kospi — which has been Asia's poster boy for the rally — sank more than one percent and has lost more than 20 percent since hitting a record high last month.

Samsung again took a hit following a rout Tuesday that came despite forecasting its operating profit had rocketed more than 1,800 percent in the second quarter on the back of strong AI chip demand.

There were also losses in Tokyo, Sydney, Singapore, Wellington and Taipei.

But Hong Kong and the mainland bucked the trend.

The Hang Seng Index gained 44.33 points, or 0.19 percent, to open at 23,541 points.

Up north, the benchmark Shanghai Composite Index was up 0.16 percent to open at 3,996 points while the Shenzhen Component Index opened 0.29 percent higher.

"After AI and tech sentiment had dominated market moves over the last couple of weeks, investors are now forced to move back to focusing on geopolitical tensions," AT Global Markets' Nick Twidale said.

"And this should dominate market sentiment, especially if we see a further escalation in the coming sessions." (Agencies)



Edited by Tony Sabine