United News of Bangladesh

Asian shares fell Wednesday as technology stocks came under pressure and rising oil prices added to concerns about inflation and interest rates. South Korea’s Kospi led the regional decline, dropping 5.7% to 6,487.34. Samsung Electronics fell 7.5%, while SK Hynix, a major memory chipmaker, lost 8.8%. In Japan, the Nikkei 225 dropped 3.2% to 65,332.04 as investors sold technology shares and worried about rising bond yields. The yield on Japan’s 10-year government bonds has remained near a three-decade high of more than 2.9%. Investors expect the Bank of Japan to raise interest rates as it tries to control inflation. China’s Shanghai Composite fell 2.2% to 3,903.61. Shares of humanoid robot maker Unitree initially surged nearly 630% in its debut on the Shanghai Stock Exchange’s STAR Market. The company raised about $900 million through its initial public offering. However, shares of UBTech, another major Chinese humanoid robot maker listed in Hong Kong, fell 10.6%. Hong Kong’s Hang Seng index edged down less than 0.1% to 25,460.46. Taiwan’s Taiex lost 1.7%, while Australia’s S&P/ASX 200 declined 0.2% to 9,053. Oil prices also weighed on investor sentiment amid uncertainty over whether the United States and Iran can reach an agreement that would allow oil tankers to move freely out of the Persian Gulf. Brent crude, the international benchmark, rose 0.6% to $91.57 a barrel, while U.S. benchmark crude gained 0.7% to $84.66. Wall Street also ended lower Tuesday, with the S&P 500 falling 0.7% for its third consecutive loss. The Dow Jones Industrial Average slipped 0.2%, while the Nasdaq composite dropped 1.3%. Technology companies that benefited strongly from the artificial intelligence boom led the decline. Investors have become concerned that some AI-related stocks may be overpriced and that demand for chips, memory and other equipment used in data centers could weaken if AI businesses fail to deliver the expected profits. Micron Technology fell 7%, while Nvidia declined 2.3% and Broadcom dropped 3.2%. Despite recent losses, these companies remain among the biggest winners of the AI boom. Micron’s shares, for example, have more than tripled this year. Rising bond yields have also worried investors. Higher oil prices are increasing inflation pressure, while governments are facing large debt burdens and higher borrowing costs. The yield on the 10-year U.S. Treasury fell slightly to 4.70% from 4.72% late Monday but remained well above the 3.97% level recorded before the war with Iran began. The 30-year Treasury yield also edged lower but stayed close to its highest level since 2007. Higher bond yields can make investors less willing to pay high prices for stocks, especially expensive technology shares. They have also pushed the average U.S. mortgage rate close to its highest level in a year, putting pressure on the housing market. A report Tuesday showed that U.S. homebuilders started fewer new homes last month than economists had expected. Higher borrowing costs could also discourage major technology companies from taking on debt to finance new data centers, potentially slowing an important source of growth for the U.S. economy. In early trading Wednesday, the U.S. dollar fell to 159.26 Japanese yen from 159.61 yen. The euro rose to $1.1582 from $1.1577.