Over in China, a government official on Wednesday said Taiwan sought to give the island's semiconductor industry to the U.S. as a "souvenir" for use as leverage when seeking support from Washington.
Still, investors seemed to have brushed off escalating tension for now. The share prices of Hong Kong-listed companies jumped 2.5% on Wednesday with technology stocks surging 3.7%, having declined in the previous session.
Shares in mainland China similarly rose.
Elsewhere, U.S. Treasury yields rebounded from their weakest level in months after the Republican-controlled U.S. House of Representatives advanced Trump's $4.5 trillion tax-cut plan, giving his 2025 priorities a major boost.