Nikkei 225 gained 1%, the KOSPI soared nearly 7%, S&P/ASX 200 edged up 0.3%, while Straits Times Index jumped 1.2%

Most Asian stock markets edged higher on Wednesday, although escalating Middle East tensions limited broader gains.

Nikkei 225 gained 1%, while the broader TOPIX index added 0.5%.

South Korea outperformed peers, with the KOSPI soaring nearly 7% as heavyweight chipmakers rallied.

SK Hynix climbed around 13%, while Samsung Electronics jumped nearly 8%.

China’s Shanghai Composite and the blue-chip Shanghai Shenzhen CSI 300 edged down 0.3% each, while Hang Seng added 1.5%.

Data on Wednesday showed China’s gross domestic product grew 4.3% year-on-year in the April-June quarter, slowing from 5.0% in the first quarter and missing expectations for 4.5% growth.

June activity data was mixed, with industrial output increasing 5.3% and retail sales rising 1.0%, both topping forecasts, while fixed-asset investment dropped 5.7% in the first half and property investment shed 18%, underscoring persistent weakness in the real estate sector.

S&P/ASX 200 edged up 0.3%, while Straits Times Index jumped 1.2%

Futures tied to Nifty 50 traded largely flat.

Elsewhere, U.S. stock index futures rose in Asian trading after the country’s stock market closed higher overnight.

Data on Tuesday showed that U.S. headline consumer prices dropped 0.4% in June, marking the first monthly decline since the pandemic, while core inflation held at 2.6%, below expectations.

The data prompted traders to pare bets on a central bank hike this month, sending Treasury yields lower and lifting the local stock market overnight, particularly technology shares.

Still, sentiment remained restrained by geopolitical risks after the U.S. president warned of further action against Iran and maintained a blockade on Iranian-linked shipping through the Strait of Hormuz.

Oil prices hovered near one-month highs, reviving concerns that higher energy costs could eventually feed back into inflation.