Asian technology stocks fell sharply on Monday, led by a 3.1% drop in South Korea's tech-heavy KOSPI, as investors reduced exposure to AI-linked chipmakers amid higher bond yields and renewed questions about the durability of the AI rally. Japan's Nikkei 225 fell 1.1%, while Nasdaq 100 futures declined 1.2%, compared with a 0.4% drop in S&P 500 futures, indicating continued pressure on growth stocks before Wall Street opened. U.S. Treasury yields climbed toward 5% after hotter-than-expected inflation data, while markets priced in an 86% chance of a 25-basis-point Federal Reserve rate hike this week. Higher yields generally weigh more heavily on technology companies with earnings expected further in the future. The pullback also followed Anthropic CEO Dario Amodei's call to slow the development of increasingly powerful AI models on safety grounds, adding to concerns about elevated valuations among AI infrastructure stocks. South Korea's technology sector was particularly exposed because Samsung Electronics and SK Hynix are major suppliers of high-bandwidth memory used in AI processors. SK Hynix fell 4.3%, Samsung Electronics declined 2.5% and LG Innotek dropped 3.1%. In Japan, Kioxia slumped 7.1%, Murata Manufacturing fell 3.6% and TDK slipped 0.1%, while Sony rose 3.1% against the broader decline. The selloff came amid a wider risk-off move after oil prices rose above $100 per barrel following renewed attacks involving Saudi energy infrastructure and Gulf shipping. Markets are awaiting the Federal Reserve's policy decision on Wednesday and the Bank of Japan's decision on Friday. Traders are also pricing a high probability of a BOJ rate hike, which has supported the yen and added pressure to Japanese equities.