Asian stocks declined following hawkish comments by Jerome Powell that helped fuel a third straight drop in the S&P 500 and saw two-year Treasury yields briefly climb to 5%.

MSCI’s Asia Pacific Index dropped as much as 0.4%, on track to erase all of its gains for the year, as worries about higher-for-longer interest rates and geopolitical tensions triggered losses across the region. Japan’s Topix dropped, while futures in Hong Kong indicated losses. South Korea’s benchmark equity index rose, supported by chip names that partially reversed losses seen in the previous day.