Asian Stocks Plunge as Oil Prices Surge, Bond Yields Rise

Asian stocks declined sharply on Wednesday as oil prices surged to around $96 per barrel, pushing global bond yields higher and reviving concerns that central banks may have to keep monetary policy tight.

The losses were led by Japan's Nikkei 225, which fell 3%, while the broader TOPIX index slipped 2.5%. Japanese markets were also pressured by expectations of a Bank of Japan interest rate hike later this month, following comments from BOJ Governor Kazuo Ueda that the central bank would continue to consider rate increases.

South Korea's KOSPI dropped 4%, with heavyweights Samsung Electronics and SK Hynix falling over 4%. The losses come as Brent crude futures extended gains after reaching a five-week high, raising concerns about inflation and pushing pressure on government bonds. The U.S. 10-year Treasury yield rose to 4.804%, its highest level since January 2025.