We need the other USB ports on the laptop to be free, which is why we need to plug the mouse and keyboard via the USB Hub.
However, as this laptop is being used as a Desktop, the laptop lid is kept closed at all times, which is why we need to be able to wake the laptop using the external keyboard and mouse.
It only wakes up if the built-in laptop keyboard is pressed. However, after plugging in a USB Hub and then plugging the external Keyboard and Mouse into the USB Hub, the laptop will no longer wake up from sleep with the external Keyboard or Mouse.
We have an ASUS Zenbook UX305FA laptop running Windows 10 that is able to be woken from sleep with an external Keyboard and Mouse when they are plugged-in directly into their individual USB ports.