Asian shares were mostly lower on Wednesday as rising bond yields cranked up pressure on stocks and other investments, undermining the AI-driven rally in technology shares. Bond yields have been climbing as the war with Iran drags on, raising worries over prolonged higher inflation.In Japan, the Nikkei 225 lost 1.2% to 59,834.15. The yield on the 10-year Japanese government bond slipped to just below 2.8% but remained at its highest level since 1997. The dollar was trading at 159.00 Japanese yen, down slightly from 159.09 yen. The euro slipped to $1.1601 from $1.1608. Chinese shares also fell, with Hong Kong’s Hang Seng losing 0.6% to 25,635.82. The Shanghai Composite index shed 0.5% to 4,148.16. Australia’s S&P/ASX 200 dropped 0.8% to 8,533.60. In South Korea, the Kospi gained 0.3% to 7,292.41 after a broad sell-off a day earlier. Taiwan’s Taiex gained 0.4%.
U.S. futures were little changed after the S&P 500 fell 0.7% Tuesday, closing at 7,353.61 for its third straight loss since setting its latest all-time high. The Dow Jones Industrial Average dropped 0.6% to 49,363.88, and the Nasdaq composite sank 0.8% to 25,870.71.
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Tech stocks are faltering following huge runs thanks to excitement over artificial-intelligence technology that critics say made them too expensive. Meanwhile, oil prices have been wavering due to uncertainty about how long the Iran war will keep the Strait of Hormuz closed for oil tankers.
