Japan and South Korea tech stocks slide as bond yields surge
The technology-heavy indexes of two of East Asia's largest stock markets ended the week with sharp losses. Long-term bond yields rose simultaneously in Japan and South Korea. Investors are repricing the tightening steps expected from the BOJ and BOK.
According to Nikkei Asia, technology firms on the Tokyo exchange and the semiconductor giants in Seoul faced sharp selling pressure on the week's final trading day. Japan's Nikkei 225 and Topix dropped more than 1%, while South Korea's Kospi pulled back, led by the country's largest tech names.
During the same window, Japan's 30-year bond yield continued to push above 2.6%, while South Korea's 10-year yield approached its highest levels in three years. The climb in yields is being fed by both the domestic inflation outlook and the global long-end rate wave.
Investors are reassessing the Bank of Japan's expected June move and the Bank of Korea's policy framework over the summer. Strategy notes flag that sharp Treasury moves in the United States could also weigh on regional risk appetite across Asia.
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