Asian Shares Follow Wall Street Lower As Bond Yields Jump On Iran Uncertainty

(RTTNews) - Asian stocks tumbled on Wednesday as oil prices remained elevated on Hormuz concerns and global bond yields hit multi-year highs, raising concerns about inflation, interest rates and economic growth.

Investors also awaited Nvidia's upcoming earnings and forward guidance for fresh clues on the strength of artificial intelligence-driven demand.

The dollar was steady near a six-week high and gold dipped below $4,500 an ounce after yields on 30-year U.S. Treasury bonds reached levels last seen in 2007.

Brent crude futures fell more than 1 percent toward $110 a barrel after NATO's top military commander said the alliance is not drawing up any plans for a potential mission in the Strait of Hormuz.

China's Shanghai Composite index dipped 0.18 percent to 4,162.18 after the country's central bank left benchmark lending rates unchanged for the 12th consecutive month, as widely expected.

Hong Kong's Hang Seng index dropped 0.57 percent to 25,651.12 after war-driven fears hammered global bond markets.

Japanese markets fell sharply as the yield on the 10-year Japanese government bond held at its highest level since 1997 on BoJ rate hike expectations.

The Nikkei average slumped 1.23 percent to 59,804.41, extending its losing streak for a fifth consecutive session amid heavy selling in tech stocks like SoftBank and Tokyo Electron. The broader Topix index settled 1.53 percent lower at 3,791.65.

Seoul stocks ended lower for a second day running, with surging oil prices and a global bond sell-off weighing on market sentiment. The Kospi index fell 0.86 percent to 7,208.95 as foreign investors continued heavy selling.

Among the prominent decliners, automaker Hyundai Motor fell 2 percent, its smaller affiliate Kia tumbled 3.6 percent and battery maker LG Energy Solution lost 3.9 percent.

Samsung Electronics ended marginally higher despite the labor union announcing plans to embark on a massive 18-day strike amid in impasse in negotiations over wage increases.

Australian markets fell sharply, with heavyweight banks and mining stocks pacing the decliners. The benchmark S&P/ASX 200 tumbled 1.26 percent to 8,496.60, marking its lowest close since March-end.

The broader All Ordinaries index ended 1.27 percent lower at 8,717 ahead of key jobs data for April, due on Thursday.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 1.64 percent to 12,761.03, joining a global sell-off amid bets the Federal Reserve may need to raise interest rates this year.

Overnight, U.S. stocks fell notably as rising inflation risks and geopolitical tensions lifted the 30-year U.S. Treasury bond yield to its highest in nearly two decades and the 10-year yield to its highest level in more than a year.

Traders fretted about a re-escalation of the Middle East conflict after President Trump claimed the United States was just an hour away from launching a fresh military strike on Iran before postponing it at the request of Gulf leaders.

Vice President JD Vance said that peace talks are making good progress, but Washington was "locked and loaded" to restart military operations if negotiations collapse.

While the tech-heavy Nasdaq Composite fell 0.8 percent, both the Dow and the S&P 500 shed around 0.7 percent.