Asian shares fall on Wall Street impact

Asian indices fell on Thursday, tracking a decline on Wall Street as another rise in bond yields rattled investors who worry that higher inflation may prompt central banks to raise ultralow interest rates.

Benchmarks were lower in most major markets, and the dollar rose against the yen. The Nikkei 225 lost 2.1 per cent to 28,930.11 and the Hang Seng dropped 2.2 per cent to 29,212.75. Australia's S&P/ASX 200 lost 0.8 per cent to 6,760.70, while the Shanghai Composite shed 2.1 per cent to 3,503.49.

South Korea's Kospi lost 1.3 per cent after the central bank reported the economy contracted in 2020 for the first time since 1998.

US government bond yields had risen on Wednesday, after easing a day earlier. The yield on the benchmark 10-year Treasury note was steady at 1.47 per cent early Thursday.