Asian stocks fall as tech selloff hits Seoul and Tokyo

Asian stocks fell Wednesday as technology shares led losses after a Wall Street selloff, with higher bond yields, rising oil prices and concern over inflation weighing on markets.

Seoul's Kospi lost more than 5%, with chipmakers SK hynix and Samsung down at least 7%. Tokyo's Nikkei 225 was down 2.6% at 65,724.25 at around 0230 GMT, with Kioxia off about 10% and SoftBank also lower.

Shanghai, Taipei and Manila fell more than 1%, while Hong Kong, Sydney, Singapore and Jakarta also declined.

The selloff followed losses in US technology and chip shares, including Nvidia, Intel, Micron and Broadcom, which pulled the Nasdaq and S&P 500 lower.

National Australia Bank's Rodrigo Catril said AI-linked stocks that had increased borrowing were showing greater sensitivity to higher longer-dated yields. Kazunori Tatebe of Daiwa Asset Management said higher yields would increase borrowing costs for hyperscalers and raise questions about capital spending and effects on AI infrastructure companies.

Oil prices also rose. West Texas Intermediate was up 1.0% at $85.82 a barrel and Brent North Sea crude was up 1.0% at $91.92 at around 0230 GMT.

Traders were weighing the prospect that the Strait of Hormuz would remain closed. US President Donald Trump wrote on Truth Social that there were no talks scheduled with Iran and that the naval blockade remained in force. His envoy and son-in-law Jared Kushner had earlier described “very positive and active conversations”.

Fiona Cincotta, an analyst at Forex.com, said investors were increasingly concerned about the possibility of a more prolonged inflation shock as oil moved toward $90 a barrel.

The yield on a 30-year US Treasury on Tuesday reached its highest level since June 2007. Minutes from the Federal Reserve's most recent policy meeting were due later Wednesday, and central bankers and finance officials are due to gather in Jackson Hole, Wyoming, later this month.