Asian Markets Slide as AI Sector Fears and Rising Oil Prices Weigh on Sentiment

Asian markets took a hit on Wednesday as worries about the AI sector and rising oil prices weighed on investor sentiment.

The Kospi, South Korea's benchmark index, plummeted 5.7% to 6,487.34, leading the regional decline. Samsung Electronics shed 7.5%, while memory chipmaker SK Hynix tumbled 8.8%. The tech-heavy Nikkei 225 in Tokyo sank 3.2% to 65,332.04 as concerns about rising bond yields and selling of tech shares pushed it lower.

The Shanghai Composite index shed 2.2% to 3,903.61, despite a strong debut for Unitree, the humanoid robot maker that saw its shares soar nearly 630% on the STAR market. However, UBTech, another major Chinese humanoid robot maker traded in Hong Kong, fell 10.6%.

Bond yields have been a concern, with the yield on 10-year Japanese government bonds trading near a three-decade high of over 2.9%. This has added to worries about inflation and huge debt loads for governments.