Asian shares were mostly lower on Wednesday as bond yields climbed and the war with Iran continued. The Nikkei 225 lost 1.2% to 59,804.41, while regional benchmarks across Hong Kong, Shanghai, Sydney, Seoul and Taipei also retreated.

Hong Kong's Hang Seng index lost 0.7% to close at 25,607.67, and the Shanghai Composite index fell 0.3% to 4,156.47. Australia's S&P/ASX 200 index dropped 1.3% to close at 8,496.60. The Kospi index fell 0.9% to 7,208.95, and Taiwan's Taiex index fell by 0.4%.

The yield on the 10-year Japanese government bond slipped to just below 2.8% and remained at its highest level since 1997. In currency trading, the U.S. dollar was trading at 158.92 Japanese yen, down from 159.09 yen. The euro was trading at $1.1604, down from $1.1608.

The declines in Asia followed losses on Wall Street. The S&P 500 index fell 0.7% on Tuesday to close at 7,353.61, its third straight loss since setting its latest all-time high. The Dow Jones Industrial Average fell 0.6% to 49,363.88, and the Nasdaq composite fell 0.8% to 25,870.71.

The yield on the 10-year U.S. Treasury rose to 4.66% from 4.61% late Monday. The yield was under 4% before the war with Iran began.

In energy markets, U.S. benchmark crude oil was trading at $103.11 per barrel, down $1.04. Brent crude was trading at $110.12 per barrel, down $1.11. The average price for a gallon of gasoline was $4.51, about 43% higher than a year earlier, according to the AAA motor club.