Asia stocks skittish as Middle East anxiety offsets AI optimism

Asia stocks show volatility amid rising Middle East tensions, which offset positive sentiment from AI sector gains. The Nikkei 225 declined 0.8 percent in early trading. Investors reacted to a regional escalation in the Gulf, raising concerns over supply chain disruptions. AI-related stocks, including those in NVIDIA and Microsoft, posted gains of up to 1.5 percent. Market sentiment remains mixed as geopolitical risks weigh on trading volumes.