Asian markets tumble as US curbs on AI chips hit tech stocks and revive trade war fears

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Posted by NewAdmin on 2025-04-16 08:48:59 |

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Global stock markets witnessed a downturn on Wednesday, with Asian shares leading the decline, as US export restrictions on AI chips impacted major tech companies like Nvidia and AMD. These new regulations, aimed at tightening control over the sale of high-performance chips used in artificial intelligence, triggered a sharp sell-off in tech stocks. Nvidia’s shares tumbled by 6.3 percent in after-hours trading following the announcement, while AMD’s dropped by 7.1 percent, reflecting investor anxiety over potential revenue losses and disruptions in the tech sector.

The broader market also reacted negatively. Futures for the S&P 500 fell by 1.2 percent, and Dow Jones Industrial Average futures lost 0.6 percent. This came alongside renewed fears of a trade war after the US launched a probe into the import of critical minerals like rare earths, which are essential to products such as electric vehicles and smartphones. Meanwhile, China responded with tariff hikes of up to 125 percent on US imports, escalating trade tensions further.

In Asia, markets faced widespread losses. Hong Kong’s Hang Seng dropped 2 percent, and South Korea’s Kospi fell 1.2 percent. Japan’s Nikkei 225 also shed 1 percent, pulled down by tech-related shares including Advantest and Disco Corp., which fell by 6.6 percent and 8 percent respectively. The Shanghai Composite Index, however, showed slight resilience, edging up by 0.1 percent despite data indicating that China’s quarterly growth had slowed to 1.2 percent.

In Europe, indices followed the trend with losses across major markets. The FTSE 100 in the UK fell by 0.2 percent despite positive inflation news, while Germany’s DAX and France’s CAC 40 dropped by 0.7 percent and 0.6 percent, respectively.

Back in the US, bond markets offered a slight reprieve. The yield on the 10-year Treasury eased to 4.33 percent, calming concerns after last week’s volatile swings. The US dollar steadied following last week’s drop, though ongoing uncertainty over the Trump administration’s trade policies continues to unsettle investors.

Oil prices also dipped as concerns over slowing global demand mounted. US crude fell by 69 cents to USD 60.64 per barrel, and Brent crude declined to USD 64.01. Overall, the market mood remains cautious amid geopolitical and economic uncertainty.

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