Stock markets in the Asian region extend their underperformance on Wednesday, facing intense pressure due to surging United States (US) Treasury Yields amid growing expectations that the Federal Reserve (Fed) will deliver at least one interest rate hike this year.

Nikkei 225 plummets over 1.7% to near 59,550, Shanghai drops 0.3% to near 4,155, Hang Seng tumble 0.8% below 25,600, and Nifty 50 declines 0.3% to near 23,550.

Meanwhile, escalating fears of a US-Iran war resumption have also dampened the market sentiment. On Tuesday, US President Donald Trump said Washington may have to give Iran another big hit, if it doesn’t agree to a deal.

In China, the People’s Bank of China (PBoC) has kept its Loan Prime Rates (LPR) steady for the 12th consecutive month in May.

Later in the day, investors will focus on Federal Open Market Committee (FOMC) minutes of the April policy meeting and the Q1 results of chip manufacturer Nvidia. Investors will pay close attention to commentary from Nvidia’s board to get fresh cues regarding the Artificial Intelligence (AI) growth outlook .