Tested this issue using latest stable #59.0.3071.115 on Win 10 touchscreen and able to move the mouse and did not observe any freezing as per the steps mentioned in original comment.

@fa15mcs016: Could you please create a new profile from Chrome://settings with no apps and extensions and check if you still face the issue?

Please let us know your observations for further triage of the issue.

Thanks!!

Hi Thank you for your response. 
We tried it after fresh installation of Chrome and clearing all settings, but it still causing the issue.
Chrome seems to be unresponsive if we use the 'Stylus', it recognises the Touch of hand but not stylus anymore. 
Touch responses use to work fine before #59.0.3071.115.
We have tried it on Surface Pro as well as other windows based Tablets and all of them causing the same issue.

Even the Button 'Click' with Stylus freezes the browser.

We also tried 

https://www.w3schools.com/html/html_basic.asp 

and 'clicked' the Next button with finger touch,  it worked, but when we clicked the same button with 'Stylus' browser got freezed.

Can you please try this with Surface Pro?
Also if you want us to try any combination of chrome://Flags settings, please do let us know.

We look forward to hear from you.

Many Thanks,

Thank you for providing more feedback. Adding requester "sandeepkumars@chromium.org" to the cc list and removing "Needs-Feedback" label.

For more details visit https://www.chromium.org/issue-tracking/autotriage - Your friendly Sheriffbot

@MTVTeam-- Could someone from MTV team please look into this as inhouse team doesn't have the stylus .

Thanks!

Are you able to tell us if this works correctly in Chrome 61?

As this sounds like a duplicate of  issue 724836