Asia Stocks Slide as Treasury Yields Batter AI Hardware Trade

Rising US Treasury yields are repricing risk across global markets by increasing discount rates and undermining valuations for growth stocks. The shock is especially important for Asia, where South Korea and other markets have heavy exposure to memory chips, servers and components tied to the artificial-intelligence investment cycle. Geopolitical risks have compounded the pressure, prompting investors to reduce crowded AI positions and seek safer assets.

The latest selloff intensified after US Treasury yields climbed above 5.3%, sharply weakening appetite for the AI trade. South Korea’s KOSPI tumbled more than 6% during the session, prompting the Korea Exchange to trigger another circuit breaker. Memory-chip and AI hardware supply-chain shares fell in tandem, showing how the bond-market shock has spread through Asian technology stocks rather than remaining confined to rate-sensitive assets.