Asian technology and semiconductor stocks dropped across markets on Wednesday, extending a global rout as long-term bond yields climbed and forced renewed scrutiny of richly valued, AI-linked companies and their cost of capital.
In Tokyo, SoftBank Group (TYO:9984) shares plunged more than 10% after a Nikkei report said the company plans to issue about 1 trillion yen in corporate bonds aimed at retail investors in Japan. The proposed sale was reported to be set up as what would be the largest-ever retail bond issue by a Japanese firm.
Other Japanese hardware and chip names also moved lower. Renesas Electronics (TYO:6723) lost roughly 9%, while Kioxia Holdings (TYO:285A) fell nearly 13%. The Nikkei 225 retreated close to 3%, tracking technology-led weakness seen on Wall Street.
South Korea saw deep losses as well. The KOSPI plunged 5.2% with Samsung Electronics (KS:005930) down about 7.5% and SK Hynix Inc (KS:000660) off roughly 10%.
In Hong Kong, Semiconductor Manufacturing International Corp (SMIC) (HK:0981) declined about 6% and Hua Hong Semiconductor (HK:1347) tumbled nearly 13%.
The Asian declines followed a steep overnight selloff in U.S. chip stocks, where Nvidia (NASDAQ:NVDA) fell 2.3%, Micron Technology (NASDAQ:MU) dropped 7% and SanDisk (NASDAQ:SNDK) slid about 9%.
Bond markets amplified the pressure. The U.S. 30-year Treasury yield briefly rose to 5.337%, its highest reading since 2007, while the 10-year yield remained near 4.70%. Rising long-term yields increase the discount applied to future earnings, heightening sensitivity in growth and AI-exposed equities after their strong rallies.
Investors were also awaiting minutes from the Federal Reserve's July meeting for additional guidance on the interest-rate outlook. Market participants are watching higher yields as a potential headwind for growth stocks, where valuations rely heavily on expected future earnings.
Market snapshot
- Nikkei 225 - nearly 3% lower
- KOSPI - plunged 5.2%
- U.S. 30-year Treasury yield - briefly 5.337%
- U.S. 10-year Treasury yield - near 4.70%
The moves underscore how rising financing costs can quickly reshape the risk-reward profile for AI-linked and semiconductor equities, even while demand for chips and data-centre infrastructure remains described as strong in market commentary.