Global technology shares tumbled on Wednesday after chipmaker gains lifted Seoul the prior week, as a spike in sovereign bond yields and fading hopes for a Strait of Hormuz deal rattled investors. The 30-year US Treasury yield reached its highest level since June 2007, while Germany's 30-year rate hit its highest since 2011.
Semiconductor stocks bore the brunt of the selloff. Seoul's Kospi shed more than five percent, with SK Hynix falling nearly 10 percent and Samsung dropping more than seven percent. In Tokyo, Kioxia plunged around 11 percent and SoftBank Group tumbled nearly seven percent. US chip giants Nvidia, Intel, Micron, and Broadcom also posted losses after the Nasdaq fell 1.3 percent on Tuesday.
Geopolitical tensions compounded the pressure, with both Washington and Tehran asserting control over the Strait of Hormuz and President Donald Trump stating no peace talks are scheduled, even as envoy Jared Kushner flagged positive conversations. Brent crude hovered near $92 a barrel.