Shares in Asia tumbled on Wednesday, mirroring Wall Street's retreat from all-time highs as a sell-off in artificial-intelligence stocks intensified. South Korea's Kospi index registered the steepest decline, falling 5.7% to 6,487.34.

Companies heavily involved in the AI sector saw substantial losses. Samsung Electronics dropped 7.5%, and memory chipmaker SK Hynix plummeted 8.8%, tracking the performance of their U.S. counterparts.

In Tokyo, the Nikkei 225 index fell 3.2% to 65,332.04. The decline was attributed to concerns over rising bond yields and a broader sell-off in technology shares. The yield on 10-year Japanese government bonds has been hovering near a three-decade high, exceeding 2.9%, amid expectations that the Bank of Japan may soon increase its benchmark interest rate to combat inflation.

The Shanghai Composite index in China decreased by 2.2% to 3,903.61. However, humanoid robot maker Unitree saw its shares soar nearly 630% on its debut on the Shanghai Stock Exchange's STAR market, raising approximately $900 million through its initial public offering. In contrast, UBTech, another prominent Chinese humanoid robot maker whose stock is traded in Hong Kong, saw its shares fall 10.6%.

The Hang Seng index in Hong Kong experienced a minor dip, losing less than 0.1% to close at 25,460.46. Taiwan's Taiex dropped 1.7%, and Australia's S&P/ASX 200 slipped 0.2% to 9,053.00.

Market sentiment was also affected by rising oil prices, adding to existing anxieties about the valuation of AI-related stocks. Brent crude, the international benchmark, gained 0.6% to $91.57 per barrel, while U.S. benchmark crude oil rose 0.7% to $84.66 per barrel. These gains are partly due to uncertainty surrounding potential deals that could allow for freer passage of oil tankers through the Persian Gulf.

On Tuesday, Wall Street closed lower, with the S&P 500 down 0.7%, the Dow Jones Industrial Average off 0.2%, and the Nasdaq composite down 1.3%. Technology stocks, particularly those benefiting from the AI boom, led the declines. Micron Technology fell 7%, while chip companies Nvidia and Broadcom dropped 2.3% and 3.2%, respectively. Despite recent volatility, many of these stocks remain significant gainers for the year.

Rising bond yields have become a persistent concern. The yield on the 10-year U.S. Treasury edged down slightly to 4.70% but remains significantly above pre-conflict levels. The 30-year Treasury yield is also near its highest point since 2007. High bond yields typically reduce investor appetite for stocks, especially those with high valuations. This trend has already impacted the U.S. housing market, with new home construction falling short of expectations, and could slow corporate borrowing, potentially affecting growth in the technology sector.

In currency markets, the U.S. dollar fell to 159.26 Japanese yen, and the euro rose to $1.1582.