The United States and other regional players converged to try to head off war between the neighboring nuclear powers. But more clashes seemed to keep hostilities roiling.

Shares of Chinese defense-manufacturing companies rallied on Wednesday, as the escalation in border tensions between India and Pakistan boosted the outlook for mainland exporters.

China on Wednesday urged both India and Pakistan to exercise restraint following India's deadly strikes on Pakistani targets, expressing concern over the rising tensions. "China regrets India's military action this morning and is concerned about the current developments,