In Japan, the Nikkei 225 slipped 2.12% to close at 29,544.29 while the Topix index dropped 2.09% to finish the trading day at 2,038.29.
Hong Kong’s Hang Seng index bucked the overall regionally trend, closing 0.67% higher at 24,663.50. Hong Kong-listed shares of China Evergrande Group surged 14.98% after the developer announced it will sell a $1.5 billion stake in Shengjing Bank to a state-owned asset management firm.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.73%.
Investors watched the 10-year Treasury yield, which crossed the 1.5% mark on Monday and was last sitting at 1.508%. Yields move inversely to prices.
The rising yields hit tech stocks overnight on Wall Street, with the Nasdaq Composite falling 2.83% to 14,546.68 for its worst day since March. Tech stocks are hit in an environment of rising yields as the rise in rates makes their future cash flows less valuable, and in turn makes the popular stocks appear overvalued.
Tech stocks in Asia slipped on Wednesday, with shares of Japanese conglomerate Softbank Group falling 1.46% and South Korea’s Samsung Electronics dropping 2.88%.
On Wall Street, the S&P 500 declined 2.04% overnight to 4,352.63 while the Dow Jones Industrial Average slipped 569.38 points to 34,299.99.
Oil prices decline
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.804 following its recent climb from below 93.6.