Korean and Japanese Equities Tumble as U.S. 10-Year Treasury Yield Hits 16-Year High

On Wednesday, Asia-Pacific markets experienced a widespread decline, with Korean and Japanese stocks suffering a more than 2% drop following the surge in the U.S. 10-year Treasury yield to its highest level in 16 years.

South Korea's Kospi index plummeted by 2.41%, closing at 2,405.69, and the Kosdaq index slid by 4%, ending at 807.4 after returning from a holiday break. Meanwhile, in Japan, the Nikkei 225 index shed 2.28%, closing at 30,526.88, marking its lowest point since late May, while the Topix index traded 2.49% lower, closing at 2,218.89.

Australia's S&P/ASX 200 index fell by 0.77%, closing at 6,890.2, while Hong Kong's Hang Seng index sank by another 0.94%, reaching its lowest point since late November, extending the losses from Tuesday's 3% decline. China's markets remained closed due to a weeklong holiday.

In the U.S. overnight, all three major indexes recorded losses. The Dow Jones Industrial Average lost 430.97 points, equivalent to a 1.29% decline, marking its worst day since March. The S&P 500 index slid by 1.37%, while the Nasdaq Composite dropped by 1.87%.

The yield on the 10-year U.S. Treasury bond rose by 11 basis points to 4.793%, after briefly touching 4.8% on Tuesday. The 30-year U.S. Treasury bond yield also reached a high of 4.924%, its highest level since 2007.

Contributions to this report were made by CNBC's Jeff Cox, Hakyung Kim, and Sophie Kiderlin.