Stocks Tumble Across Asia as Bond Yields Surge on Rate Hike Fears

Stock markets in Asia fell sharply following a sell-off on Wall Street as US bond yields hit their highest levels since 2007. Investors are worried that interest rates will have to stay high to combat inflation.

The job openings figures released in the US on Tuesday showed the labor market remaining tight, triggering concerns the Federal Reserve will continue raising rates aggressively.

The Nikkei in Japan sank 2.2% and South Korea's Kospi dropped 2.3%. Stocks also fell in Hong Kong, Taiwan, Sydney and across the region.

Troubled Chinese property developer Evergrande plunged 8.5% in Hong Kong after sinking 28% the previous day. Concerns remain about its financial health.

On Wall Street, the Dow Jones fell 1.3%, the S&P 500 dropped 1.4% and the Nasdaq declined 1.9%. The surge in Treasury yields is putting pressure on stocks as rates may stay elevated.