Asian markets went into reverse Wednesday, tracking fresh losses on Wall Street as investors fret about rising US Treasury yields and speculation that interest rates will rise four times this year.
Technology firms were once again in the firing line in response to a plunge in Google parent Alphabet on costs worries while Apple suffered a fifth straight loss because of worries over the crucial smartphone sector, according to APP.
The yield on benchmark 10-year Treasuries broke three percent on Tuesday for the first time in more than four years as surging oil prices and the impact of Donald Trump's huge tax cuts fan inflation expectations.
There is a fear the higher yields will divert investor attention from equities as safe-bet government debt looks more attractive.
That, along with an improving economy, has fanned talk the Federal Reserve will have to lift borrowing costs more than the three times that has been widely expected this year.
The dollar held most of its recent gains against its peers on expectations of higher rates.
All three main indexes in New York ended deep in the red, with the Dow clocking up a fifth successive loss, with sentiment also dented when construction and mining equipment giant Caterpillar gave a subdued earnings outlook.
“The sudden surge in US yields had already been weighing on equity sentiment, but when you factor in the skid in technology stocks and Caterpillar's less than reassuring outlook, it makes for a very rough day on the trading floor,” said Stephen Innes, head of Asia-Pacific trading at OANDA.