Chinese stock markets displayed a mixed performance as gains in energy and defense sectors were offset by losses in aviation and tourism, while the yuan weakened against the dollar amid escalating geopolitical tensions.

The Shanghai Composite and CSI 300 indexes remained largely unchanged, with investor sentiment supported by expectations of government intervention ahead of a key parliamentary meeting. However, Hong Kong's Hang Seng index, more susceptible to global market fluctuations, experienced a decline.

The energy sector in mainland China saw significant gains, fueled by rising oil prices. PetroChina and CNOOC experienced substantial increases. Gold stocks also surged as investors sought safe-haven assets amid the uncertainty.

Conversely, airline and tourism stocks faced downward pressure due to potential travel disruptions stemming from the increased tensions. China Southern Airlines and China Eastern Airlines saw declines in both Shanghai and Hong Kong trading.

Meanwhile, the Chinese yuan weakened against the dollar, extending losses from the previous session. Increased demand for dollars from corporations, following the central bank's decision to encourage dollar purchases in the derivatives market, further contributed to the yuan's decline.

Despite the recent weakening, some analysts maintain a positive outlook on the yuan. Goldman Sachs analysts suggest that the central bank's actions are primarily aimed at managing the pace of appreciation, rather than reversing the overall trend.

Looking ahead, the upcoming annual meeting of the Chinese parliament is expected to set key economic targets for the year. Economists anticipate a GDP growth target of 4.5% to 5.0%, with a focus on boosting consumption and supporting innovation.