CANBERA (dpa-AFX) - Asian stocks ended broadly lower on Wednesday amid concerns about surging oil prices and rising bond yields.
Chip makers and other major technology shares succumbed to heavy selling pressure after a closely tracked U.S. semiconductor index sank 5 percent overnight on signs of rising borrowing costs around the world.
The dollar hovered near multi-year lows while Treasury yields eased from recent highs ahead of the release of the minutes of the Federal Reserve's July meeting later in the day.
Gold edged up to $4,356 an ounce after tumbling nearly 2 percent in the previous session to snap a two-day rise amid a sell-off in bond markets.
Brent crude futures rose toward $92 a barrel, extending gains for a fourth consecutive session after the American Petroleum Institute estimated that U.S. crude oil inventories fell by 328000 barrels in the week ending August 14, marking their first decline in five weeks.
A bulk carrier was struck by an unknown projectile whole transiting the Strait of Hormuz, raising the prospect of ongoing disruptions to supply.
China's Shanghai Composite index fell 2.40 percent to 3,894.42 as semiconductor and robotics shares came under heavy selling pressure despite Unitree's strong market debut.
Hong Kong's Hang Seng index swung between gains and losses before finishing marginally higher at 25,495.07.
Japanese markets fell sharply amid stalled U.S.-Iran diplomacy efforts and higher bond yields. The Nikkei average fell 3.16 percent to 65,326.42 while the broader Topix index settled 3.09 percent lower at 4,012.31.
Artificial intelligence and data center-related shares paced the decliners, with Kioxia Holdings falling 12.6 percent and SoftBank losing 10.3 percent. Advantest declined 2.3 percent and Tokyo Electron lost a little over 3 percent.
The yen was firm against the dollar after data showed Japan's core machinery orders, an indicator of future business spending, rebounded more than expected in June. Seoul stocks plummeted to hit a one-week low amid a global bond rout and renewed geopolitical tensions in West Asia.
The Kospi index plunged 5.80 percent to 6,471.17, led by steep losses in chipmakers. Samsung Electronics slumped 7.8 percent and SK Hynix nosedived 9.8 percent.
Australian markets ended lower for a sixth consecutive session after wage growth data for the June quarter highlighted persistent price pressures in the economy.
The benchmark S&P/ASX 200 dropped 0.18 percent to 9,053.80, dragged down by financials on housing jitters. The broader All Ordinaries index ended 0.20 percent lower at 9,255.20.
WiseTech Global shares plunged 8.7 percent after antitrust authorities raided the offices of the logistics software provider over alleged breaches of the Competition and Consumer Act.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.46 percent to 13,929.67, extending gains from the previous session to reach its highest level since August 6 following better-than-expected annual results from Fletcher Building and Ebos Group.
Overnight, U.S. stocks fell for a third consecutive session as elevated oil prices and rising global bond yields fueled inflation concerns.
The 30-year bond yield reached its highest levels in nearly two decades and the benchmark 10-year yield finished around 4.708 percent after President Donald Trump said there are currently no U.S.-Iran talks taking place or scheduled and that the U.S. naval blockade remains in force.
Trump also insisted the Strait of Hormuz was open and operating and that mines had been removed or detonated.
On the contrary, Iran maintained that the strategic waterway will not be opened until the United States meets its demands, highlighting the deep disconnect between the countries.
The tech-heavy Nasdaq Composite tumbled 1.3 percent following a sharp decline in semiconductor and data-storage stocks.
The S&P 500 shed 0.7 percent and the narrower Dow dipped 0.2 percent after the release of disappointing readings on housing starts and industrial output.
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