{"id":61965,"date":"2026-05-15T04:38:33","date_gmt":"2026-05-15T08:38:33","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-asian-tech-slump-rising-yields-and-middle-east-deadlock\/61965\/"},"modified":"2026-05-15T04:38:33","modified_gmt":"2026-05-15T08:38:33","slug":"global-markets-shaken-by-asian-tech-slump-rising-yields-and-middle-east-deadlock","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-asian-tech-slump-rising-yields-and-middle-east-deadlock\/61965\/","title":{"rendered":"Global Markets Shaken by Asian Tech Slump, Rising Yields, and Middle East Deadlock"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Asian tech stocks plunged as South Korea\u2019s KOSPI fell 3% and Japan\u2019s Nikkei 225 dropped 1.2%<\/strong>, driven by surging producer inflation and a spike in global bond yields.<\/li>\n<li><strong>US Treasury yields reached multi-year highs<\/strong>, with the <strong>30-year bond clearing 5%<\/strong> for the first time since 2007, signaling a major repricing of interest rate expectations.<\/li>\n<li><strong>The US officially rejected Iran\u2019s 14-point peace proposal<\/strong>, maintaining a diplomatic stalemate as Tehran insists on five non-negotiable conditions before entering further talks.<\/li>\n<li><strong>Japan\u2019s ruling Liberal Democratic Party (LDP) is considering a historic defense spending hike to 3\u20135% of GDP<\/strong>, a massive shift from its traditional 1\u20132% range.<\/li>\n<li><strong>A new Ebola outbreak in Congo\u2019s Ituri province has been confirmed<\/strong>, with <strong>246 suspected cases and 65 deaths<\/strong> recorded to date.<\/li>\n<\/ul>\n<h2>Market Turmoil in Asia and Rising Yields<\/h2>\n<p>Equity markets across Asia faced a &quot;sea of red&quot; on Friday as a sudden surge in bond yields dampened the recent AI-fueled rally. In South Korea, the <strong>KOSPI<\/strong> index tumbled <strong>3%<\/strong> after briefly touching the 8,000-point milestone, while Japan\u2019s <strong>Nikkei 225<\/strong> fell <strong>1.2%<\/strong>. The sell-off was exacerbated by Japanese producer price data, which showed a <strong>4.9% jump in April<\/strong>, the fastest pace in three years, fueling bets that the <strong>Bank of Japan<\/strong> will raise interest rates as early as June.<\/p>\n<p>The volatility in Asia comes despite a strong overnight performance from Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>), which rose <strong>4%<\/strong> after the US cleared sales of its H200 chips to China. However, the broader tech sector remained under pressure as global borrowing costs soared. The <strong>US 30-year Treasury yield hit 5.06%<\/strong>, its highest level in nearly two decades, while Japan\u2019s <strong>10-year yield reached 2.6%<\/strong>, a 29-year high. <em>Analysts suggest that runaway inflation and the prospect of &quot;higher-for-longer&quot; rates are finally forcing a painful correction in equity valuations.<\/em><\/p>\n<h2>Geopolitical Standoff: US and Iran<\/h2>\n<p>Diplomatic efforts to end the conflict in the Middle East hit a significant roadblock as Washington rejected Iran\u2019s latest 14-point peace plan in its entirety. According to sources in Tehran, the <strong>Supreme Leader<\/strong> has instructed negotiators not to engage in talks unless five core conditions are met, including the <strong>lifting of all sanctions<\/strong>, the <strong>release of frozen assets<\/strong>, and <strong>recognition of Iranian sovereignty over the Strait of Hormuz<\/strong>.<\/p>\n<p>Adding to the regional friction, security sources reported a <strong>drone attack<\/strong> targeting Iranian opposition headquarters north of <strong>Erbil, Iraq<\/strong>. Meanwhile, Russian Foreign Minister <strong>Sergei Lavrov<\/strong> blamed &quot;unprovoked aggression&quot; by the US and Israel for the ongoing maritime instability in the Strait of Hormuz. <em>The failure of these diplomatic tracks has kept Brent crude prices elevated at approximately $107 per barrel, as markets price in a prolonged energy supply risk.<\/em><\/p>\n<h2>Japan\u2019s Defense Pivot and Global Diplomacy<\/h2>\n<p>Japan is moving toward a radical expansion of its military capabilities, with the ruling <strong>LDP<\/strong> weighing a defense budget increase to <strong>3\u20135% of GDP<\/strong>. This move, which aligns Japan more closely with <strong>NATO<\/strong> spending standards, comes amid intense pressure from the <strong>Trump administration<\/strong> for allies to increase their financial contributions to regional security. The proposal includes plans for domestic drone production and a reorganization of <strong>Self-Defense Forces<\/strong> bases to ensure long-term sustainability in potential conflicts.<\/p>\n<p>On the diplomatic front, a series of high-stakes summits are scheduled. Russian President <strong>Vladimir Putin<\/strong> is expected to visit <strong>Beijing on May 20<\/strong>, just days after <strong>Xi Jinping\u2019s<\/strong> landmark summit with <strong>Donald Trump<\/strong>. Additionally, Indian Prime Minister <strong>Narendra Modi<\/strong> has confirmed he will visit <strong>Russia<\/strong> later this year. <em>These movements highlight China\u2019s growing role as a pivotal power capable of balancing relations between rival states in an increasingly fractured world order.<\/em><\/p>\n<h2>Economic Data and Health Crisis<\/h2>\n<p>In Europe, <strong>Italy\u2019s April CPI<\/strong> was confirmed at <strong>2.8% Y\/Y<\/strong>, slightly below the estimated <strong>2.9%<\/strong>. While the data suggests a marginal cooling of price pressures, the broader Eurozone outlook remains clouded by high energy costs and stagnant growth. In the UK, political attention has shifted to the <strong>Labour Party\u2019s National Executive Committee (NEC)<\/strong>, which is reportedly on a &quot;knife edge&quot; regarding a waiver for <strong>Andy Burnham<\/strong> to stand in an upcoming by-election.<\/p>\n<p>Finally, a humanitarian crisis is unfolding in the <strong>Democratic Republic of the Congo<\/strong>, where the <strong>Africa CDC<\/strong> has confirmed a new <strong>Ebola outbreak<\/strong> in the <strong>Ituri province<\/strong>. With <strong>65 deaths<\/strong> already recorded, health officials are calling for urgent regional coordination to prevent the virus from spreading to neighboring <strong>Uganda<\/strong> and <strong>South Sudan<\/strong>. <em>The outbreak adds a layer of complexity to a region already struggling with significant security challenges and internal displacement.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Asian tech stocks plunged as South Korea\u2019s KOSPI fell 3% and Japan\u2019s Nikkei 225 dropped 1.2%, driven by 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