Shares across Asia experienced a mostly lower day of trading on Wednesday, following a rare period of calm in both Wall Street and other global markets. U.S. futures and oil prices also dipped, reflecting growing concerns about the ongoing trade conflict between the U.S. and China.
Chipmaker Nvidia saw a significant drop of 6.3% in after-hours trading, following news that the U.S. had imposed stricter controls on its exports of a key computer chip used in artificial intelligence.
In Asia, China’s stock markets led regional declines, despite the country’s economy growing at a robust 5.4% annual rate in the first quarter of 2025. This growth was largely driven by strong industrial production, retail sales, and exports. However, when compared to the previous quarter, China’s growth slowed, with a quarterly increase of just 1.2%, down from 1.6% in the final quarter of 2024.
Hong Kong’s Hang Seng Index dropped 2.5% to 20,922.54, while the Shanghai Composite fell 0.9% to 3,237.60. Private economists have revised their forecasts for the Chinese economy after U.S. President Donald Trump’s tariffs pushed duties on most imports from China to 145%. This move was mirrored by China’s decision to increase tariffs on U.S. imports to 125%.
ANZ Research analysts pointed to the unpredictable nature of the tariff announcements as a key factor weakening business sentiment and economic activity. “Our view is that the tariff shock is caused by the unpredictability rather than the tariff itself,” said Raymond Yeung, an economist at ANZ, in a report following the release of China’s economic data.
The Japanese market also faced setbacks, with the Nikkei 225 index falling 0.9% to 22,948.18. In South Korea, the Kospi index slipped 0.7% to 2,461.45, while Australia’s S&P/ASX 200 saw a modest increase of 0.3% to 7,781.10. In contrast, India’s Sensex remained largely unchanged, and Thailand’s SET index gained 0.2%.
On Tuesday, U.S. markets experienced lackluster performance, with the S&P 500 dropping 0.2% to 5,396.63, the Dow Jones Industrial Average declining 0.4% to 40,368.96, and the Nasdaq Composite edging down by less than 0.1% to 16,823.17. Investors continue to monitor the evolving impact of Trump’s tariff decisions on global trade.
In the bond market, the yield on the 10-year U.S. Treasury remained steady at 4.33%, offering some reassurance to investors who had been rattled by sharp fluctuations in government bond prices last week. The yield had climbed as high as 4.48% at the end of last week, but this week’s movement suggested that investor confidence in U.S. bonds as a safe haven had stabilized.
The U.S. dollar, which had experienced a sharp drop in value last week, also regained some ground, mitigating fears that the ongoing trade war could undermine the dollar’s status as a global safe-haven asset.
Among individual stocks, DaVita Health, which experienced a ransomware attack affecting its operations, saw a 3% decline for the second consecutive day. The company disclosed it is still investigating the attack, which was first detected on Saturday, and cannot yet assess its full impact.
On the positive side, Bank of America surged by 3.6% after reporting stronger-than-expected profits for the latest quarter. Other major U.S. banks, including Citigroup, which rose 1.8%, have also been reporting solid results, benefitting from market volatility driven by tariff-related news.
Palantir Technologies saw a notable increase of 6.2%, as NATO announced it would integrate the company’s artificial intelligence capabilities into its operations.
In commodities, U.S. benchmark crude oil dropped 19 cents to $61.14 per barrel, while Brent crude, the international standard, fell by 18 cents to $64.49. Expectations of slower global economic growth, spurred by escalating tariffs, have raised concerns about waning demand for oil and other resources.
The value of the U.S. dollar also fluctuated, falling to 142.61 Japanese yen from 143.24 yen, while the euro gained ground, rising to $1.1336 from $1.1283.
Related topics:
