Asian stocks were wobbly on Wednesday, a day after a global selloff in technology and semiconductor shares, with analysts cautioning about the risk of renewed volatility.MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.02 percent. South Korean shares, which plunged 10 percent on Tuesday in their sharpest one-day drop since March, jumped 2.2 percent, while Japan's Nikkei was swinging between gains and losses, last down 0.8 percent.
"Price action in markets over the last seven trading days has been alarming, not just when it falls, but also when it rises," said Michael McCarthy, market analyst at Moomoo Securities Australia. "When markets move so rapidly, in either direction, it's a sign of instability."
Risk-off sentiment swept Wall Street overnight, tracking moves in Europe and Asia. US stocks fell on concerns about rising debt-funded AI spending and speculation that the Federal Reserve could adopt a more hawkish stance, while Treasury yields declined as investors sought the safety of government debt.
The Dow Jones Industrial Average lost 0.09 percent, the S&P 500 fell 1.4 percent, and the Nasdaq Composite fell 2.2 percent. The yield on benchmark US 10-year notes fell 1.41 basis points to 4.493 percent.
