Asian shares track Wall Street's retreat as bond markets crank up pressure

20/05/2026

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), right, and the foreign exchange rate between US dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, on May 20. (AP)

TOKYO, May 20, (AP): Asian shares were mostly lower on Wednesday as rising bond yields cranked up pressure on stocks and other investments, undermining the AI-driven rally in technology shares. Bond yields have been climbing as the war with Iran drags on, raising worries over prolonged higher inflation. In Japan, the Nikkei 225 lost 1.2% to 59,804.41.

The yield on the 10-year Japanese government bond slipped to just below 2.8% but remained at its highest level since 1997. The dollar was trading at 158.92 Japanese yen, down slightly from 159.09 yen. The euro slipped to $1.1604 from $1.1608. Chinese shares also fell, with Hong Kong's Hang Seng losing 0.7% to 25,607.67. The Shanghai Composite index shed 0.3% to 4,156.47.

Australia's S&P/ASX 200 dropped 1.3% to 8,496.60. In South Korea, the Kospi dropped 0.9% to 7,208.95 after a broad sell-off a day earlier. Taiwan's Taiex gave up 0.4%. U.S. futures were little changed after the S&P 500 fell 0.7% Tuesday, closing at 7,353.61 for its third straight loss since setting its latest all-time high. The Dow Jones Industrial Average dropped 0.6% to 49,363.88, and the Nasdaq composite sank 0.8% to 25,870.71.

Tech stocks are faltering following huge runs thanks to excitement over artificial-intelligence technology that critics say made them too expensive. Meanwhile, oil prices have been wavering due to uncertainty about how long the Iran war will keep the Strait of Hormuz closed for oil tankers. Attention Wednesday will be focused on Nvidia's latest quarterly results.

The chip company has routinely blown past analysts’ expectations each quarter and provided forecasts for future growth that have consistently topped Wall Street’s. How it does could determine whether technology stocks and the larger US stock market can maintain their rally. Nvidia fell 0.8% Tuesday and was one of the heaviest weights on the S&P 500 because of its immense size. Akamai Technologies dropped 6.3% for one of Wall Street’s sharper losses Tuesday after the cybersecurity and cloud computing company said it wants to raise $2.6 billion through a convertible note offering.