Asia-Pacific markets set to open lower after higher Treasury yields drag down Wall Street

Asia-Pacific markets were set to open lower Wednesday, tracking losses on Wall Street after Treasury yields rose and major tech stocks declined.

Australia’s S&P/ASX 200 opened 0.11% lower.

Japan’s Nikkei 225 futures pointed to a lower open for the market, giving back gains after a rally in tech stocks lifted the index to lead gains in Asia on Tuesday. The futures contract in Chicago was at 39,905 while the futures contract in Osaka last traded at 39,730, compared to the index’s previous close of 40,083.3.

Hong Kong’s Hang Seng index futures last traded at 19,447, pointing to a flat open as the HSI’s last closed at 19,447.58.

Traders in Asia will continue monitoring developments related to Chinese tech firm Tencent Holdings, whose shares fall almost 8% on Tuesday following its inclusion in the U.S. Department of Defense list of “Chinese military companies.”

Separately, Samsung is slated to release its earnings guidance for the fourth quarter of 2024 later in the day.

Overnight in the U.S., declines across major tech stocks dragged the market lower.

The S&P 500 dipped 1.11% to close at 5,909.03. The Dow Jones Industrial Average lost 178.20 points, or 0.42%, and ended at 42,528.36. The Nasdaq Composite slid 1.89% to 19,489.68. The major averages traded higher earlier in the day before rolling over. Nvidia shares fell 6.2% after hitting a record.

Tesla slipped 4% after Bank of America downgraded the electric-vehicle maker given its high valuation and risks associated with its strategy. Meta Platforms shed nearly 2%, while Apple and Microsoft each dipped more than 1%.

—CNBC’s Pia Singh and Lisa Kailai Han contributed to this report.