Asian shares were mostly lower on Wednesday as rising bond yields cranked up pressure on stocks and other investments, undermining the AI-driven rally in technology shares.

Bond yields have been climbing as the war with Iran drags on, raising worries over prolonged higher inflation.

In Japan, the Nikkei 225 lost 1.2% to 59,804.41.

The yield on the 10-year Japanese government bond slipped to just below 2.8% but remained at its highest level since 1997. The dollar was trading at 158.92 Japanese yen, down slightly from 159.09 yen.

The euro slipped to $1.1604 from $1.1608.

Chinese shares also fell, with Hong Kong’s Hang Seng losing 0.7% to 25,607.67. The Shanghai Composite index shed 0.3% to 4,156.47.

Australia’s S&P/ASX 200 dropped 1.3% to 8,496.60.

In South Korea, the Kospi dropped 0.9% to 7,208.95 after a broad sell-off a day earlier. Taiwan’s Taiex gave up 0.4%.

U.S. futures were little changed after the S&P 500 fell 0.7% Tuesday, closing at 7,353.61 for its third straight loss since setting its latest all-time high.

The Dow Jones Industrial Average dropped 0.6% to 49,363.88, and the Nasdaq composite sank 0.8% to 25,870.71.

Tech stocks are faltering following huge runs thanks to excitement over artificial-intelligence technology that critics say made them too expensive.

Meanwhile, oil prices have been wavering due to uncertainty about how long the Iran war will keep the Strait of Hormuz closed for oil tankers.

Attention Wednesday will be focused on Nvidia’s latest quarterly results. The chip company has routinely blown past analysts’ expectations each quarter and provided forecasts for future growth that have consistently topped Wall Street’s.

How it does could determine whether technology stocks and the larger U.S. stock market can maintain their rally. Nvidia fell 0.8% Tuesday and was one of the heaviest weights on the S&P 500 because of its immense size.

Akamai Technologies dropped 6.3% for one of Wall Street’s sharper losses Tuesday after the cybersecurity and cloud computing company said it wants to raise $2.6 billion through a convertible note offering.

Home Depot rose 0.9% after flipping an early loss following its latest earnings report. Its profit and revenue edged past analysts’ expectations, but an important measure for retailers that looks at performance for stores more than 1 year old came in below some analysts’ expectations.

CEO Ted Decker said Home Depot saw similar demand from its customers as it did throughout last year “despite greater consumer uncertainty and housing affordability pressure.”

Many big U.S. companies have been reporting stronger-than-expected profits for the latest quarter thanks in part to their customers continuing to spend despite high gasoline prices and other challenges. That’s helped vault U.S. stock indexes to records, but disquiet in the bond market is threatening that.

The yield on the 10-year Treasury rose to 4.66% from 4.61% late Monday and from less than 4% before the war with Iran began. That’s a notable increase, and it’s part of a worldwide climb that’s making stock prices look even more expensive and threatening to slow the economy.

Higher yields can drive up rates for mortgages and loans going to companies to build AI data centers, which has been a big source of growth for the economy.

Yields rose even as oil prices eased.

Early Wednesday, U.S. benchmark crude oil was down $1.04 at $103.11 per barrel. Brent crude, the international standard, lost $1.11 to $110.12 per barrel.

The average price for a gallon of gasoline was $4.51, according to the AAA motor club, or about 43% more than it cost last year at this time.

Elaine Kurtenbach, The Associated Press