Technology stocks led losses in Asian equity markets as higher bond yields around the world put a question mark on valuations after a record-breaking rally led by artificial intelligence shares.
MSCI’s Asia Pacific share benchmark fell 0.7%, with South Korea’s Kospi, a bellwether for AI investment, sliding 3.7%.
Futures contracts for the Nasdaq 100 Index slid 0.5% as sentiment toward the sector remained weak after the Philadelphia Semiconductor Index dropped for a second day on Monday.
The dollar edged higher versus its major peers. Global stocks are set for a third day of declines as concerns about Iran persisted even after President Donald Trump said he was holding off on fresh strikes on the Islamic Republic.
While Brent crude fell 2% to about $110 a barrel Tuesday on Trump’s comments, the commodity is still up about 80% this year with the vital Strait of Hormuz still effectively shut.
Elevated oil prices and concerns about inflation have sent yields of government debt from Japan to the US to multi-year highs.
