Asian shares decline after stocks slip on Wall Street, while global bond sell-off intensifies

Asian shares experienced a decline on Wednesday following a drop in Wall Street stocks and an intensifying global bond sell-off. The Nikkei 225 in Tokyo fell by 3% to 64,278.95, while SoftBank Group, a Japanese multinational investment firm that invests in OpenAI, saw a 6.3% decrease. South Korea's Kospi dropped 3.6% to 6,588.95, with Samsung Electronics and SK Hynix each sliding 3.3% and 3.5%, respectively.

The Hang Seng in Hong Kong fell 0.8% to 25,126.40, and the Shanghai Composite index declined 0.9% to 3,943.22. Australia's S&P/ASX 200 experienced a 1.1% drop to 8,971.90.

On Tuesday, Wall Street's S&P 500 lost 0.7%, with the Dow Jones Industrial Average sinking 0.8% and the Nasdaq composite falling 1%. Tech giants Nvidia, Amazon, and Advanced Micro Devices (AMD) were among the biggest decliners, with Nvidia falling 1.5%, Amazon dropping 1.9%, and AMD losing 2.4%.

Oil prices rose after the U.S. conducted additional military strikes on Iran, which responded by firing missiles and drones in the region. Elevated inflation and increasing U.S. government debt are pressuring bond yields upward, as investors seek higher returns due to heightened risks. The yield on the 10-year U.S. Treasury climbed to around 4.80% from 4.75% on Monday, while the 2-year Treasury yield rose to about 4.40%. The value of the U.S. dollar strengthened to 160.27 Japanese yen, and the euro decreased to $1.1578.