Nvidia Sinks 6% on U.S. AI Chip Ban as Asia Markets Dive on China GDP, Tariff Shock

Stock markets in Asia moved mostly lower on Wednesday following a relatively quiet trading day in the U.S., as fresh export restrictions on American tech and concerns over global trade policies unsettled investors.

Nvidia was in focus after it said the U.S. government had tightened rules around the overseas sale of some of its advanced computer chips. The news sent its shares down 6.3% in after-hours trading.

China’s Economic Growth Strong, but Quarterly Pace Slows

China reported 5.4% annual growth for the first quarter, driven by gains in manufacturing, exports, and retail sales. But quarter-to-quarter growth slowed to 1.2%, a drop from the 1.6% seen in the final three months of 2024.

Markets in mainland China and Hong Kong fell on the update, as investors focused more on the slower pace of growth than the headline figure. The Shanghai Composite lost 0.9% to 3,237.60, and the Hang Seng in Hong Kong tumbled 2.5% to 20,922.54.

Recent increases in tariffs by both the U.S. and China are adding to the unease. President Donald Trump raised tariffs on most goods coming from China to 145%, while Beijing responded with its own set of duties, now reaching 125% on U.S. imports. Economists are warning that this back-and-forth could cool economic activity in the coming months.

According to analysts, the real damage may come not from the tariffs themselves, but from the unpredictability of the policy changes, which is already hurting business confidence.

Markets in the Region Follow the Downtrend

Japan’s Nikkei 225 slipped 0.9% to 22,948.18. South Korea’s Kospi was also down 0.7%, closing at 2,461.45. Markets in India were little changed, while Australia’s ASX 200 rose slightly by 0.3% to 7,781.10. In Thailand, the SET index picked up 0.2%.

Wall Street Slows as Investors Watch Trade Developments

U.S. markets pulled back modestly on Tuesday. The S&P 500 eased 0.2% to 5,396.63, the Dow Jones Industrial Average dipped 0.4% to 40,368.96, and the Nasdaq edged down slightly to 16,823.17.

The bond market, which has seen some turbulence recently, showed signs of calming. The yield on the 10-year Treasury note settled at 4.33%, down from highs earlier in the week. Stable bond yields are often seen as a sign that investors are regaining some confidence.

Currency markets also steadied. The U.S. dollar was slightly lower against the yen, trading at 142.61. The euro ticked up to $1.1336.

Tech and Banks in Spotlight

Aside from Nvidia’s drop, other notable moves included Palantir Technologies, which gained 6.2% after NATO confirmed it would use the company’s software for command-related operations.

Big U.S. banks also saw strong results. Bank of America jumped 3.6% after reporting quarterly profits that beat analyst expectations. Citigroup also posted solid numbers, rising 1.8%. Their trading desks have benefited from the recent market swings linked to trade headlines.

On the downside, healthcare provider DaVita fell for a second straight day, down another 3%. The company is still responding to a ransomware attack discovered over the weekend. It’s currently investigating the extent of the damage.

Oil Prices Dip on Growth Concerns

In energy trading, U.S. crude slipped 19 cents to $61.14 a barrel. Brent crude, the international benchmark, dropped 18 cents to $64.49. Weakening demand expectations—tied in part to global trade worries—are keeping oil prices under pressure.

Also Read: Massive U.S. Tariff Hits India’s Diamond Industry — Thousands of Jobs at Risk!