Asian stock markets were mixed on Wednesday as excitement over artificial intelligence-related shares eased and concerns over the ongoing conflict involving Iran continued to weigh on investor sentiment.

Nikkei 225 in Japan rose 0.8 percent in afternoon trading, while Kospi in South Korea jumped 2.7 percent, recovering from earlier losses linked to uncertainty over possible government measures involving AI company profits.

In Australia, the S&P/ASX 200 fell 0.5 percent. Hang Seng Index in Hong Kong was little changed, while Shanghai Composite Index in China gained 0.6 percent.

Market analysts said strong corporate earnings and continued interest in AI stocks are still supporting markets, but rising oil prices and geopolitical tensions are making investors more cautious.

Oil prices slipped in early trading but remained far higher than before the conflict in the Middle East intensified. Analysts said the disruption to shipping through the Strait of Hormuz has added to concerns about global energy supplies.

On Wall Street overnight, the S&P 500 fell 0.2 percent from its record high. The Dow Jones Industrial Average edged up 0.1 percent, while the Nasdaq Composite dropped 0.7 percent.

Technology and chip stocks led the decline. Intel fell 6.8 percent, while Micron Technology lost 3.6 percent.

In the bond market, U.S. Treasury yields rose, reflecting expectations that the Federal Reserve will keep interest rates unchanged to control inflation.

In currency trading, the U.S. dollar strengthened slightly against the Japanese yen, while the euro edged lower against the dollar.

Investors are now watching developments in the Middle East and signals from central banks for clues about the direction of global markets.