Bangkok: World shares were mostly lower Wednesday as stocks of Nvidia and other technology companies were walloped by tighter US controls on exports of advanced computer chips used for artificial intelligence.
The future for the S&P 500 was down 0.8 per cent while that for the Dow Jones Industrial Average lost 0.3 per cent.
Chip maker Nvidia’s shares fell 5.9 per cent in premarket trading after it said the US had imposed stricter controls on its exports of one of its computer chips designed for use in artificial intelligence. Rival chip maker AMD’s shares dropped 6.7 per cent.
Trade war concerns also were revived by a Trump administration announcement of an investigation into imports of critical minerals such as rare earths, which are used in smart phones, electric vehicles and many other products.
In early European trading, Britain’s FTSE 100 lost 0.3 per cent to 8,224.51 after the government said inflation in the UK fell for the second month running in March largely as a result of lower gas prices.
Germany’s DAX fell 0.7 per cent to 21,139.72, while the CAC 40 in Paris gave up 0.5 per cent to 7,299.72.
Stocks in China led Asian declines after Beijing reported the world’s second largest economy grew at a strong 5.4 per cent annual rate in the first quarter of the year, helped by strong industrial production, retail sales and exports. But in quarterly terms, growth slowed to 1.2 per cent in January-March from 1.6 per cent in the final quarter of 2024.
Hong Kong’s Hang Seng dropped 1.9 per cent to 21,056.98, while the Shanghai Composite index regained lost ground, adding 0.3 per cent to 3,276.00.
Private sector economists have been downgrading their forecasts after President Donald Trump recently pushed his tariffs on most imports from China to 145 per cent, while China raised its duties on imports from the US to 125 per cent.
Analysts at ANZ Research said activity in the current quarter is already weakening.
“Our view is that the tariff shock is caused by the unpredictability rather than the tariff itself. President Trump’s announcements have affected business sentiment and activity,” Raymond Yeung and other ANZ researchers said in a report after the China data was released.
In Tokyo, the Nikkei 225 index shed 1 per cent to 33,920.40, pulled lower by big tech companies like chip testing equipment maker Advantest, whose shares dropped 6.6 per cent and Disco Corp. which plunged 8 per cent.
South Korea’s Kospi fell 1.2 per cent to 2,447.43, while in Australia, the S&P/ASX 200 edged less than 0.1 per cent lower to 7,758.90.
India’s Sensex rose 0.4 per cent and Bangkok’s SET climbed 0.9 per cent.
On Tuesday, US stocks drifted, with the S&P 500 slipping 0.2 per cent and the Dow down 0.4 per cent. The Nasdaq composite edged less than 0.1 per cent lower.
Uncertainty over President Donald Trump’s tariffs kept investors watching to see what comes next.
The US bond market appeared to calm after its sudden and sharp moves last week shook confidence in the status of US government bonds as a safe haven against risks.
The yield on the 10-year Treasury was steady at 4.33 per cent, down from 4.38 per cent late Monday and 4.48 per cent at the end of last week. A week earlier it had been at just 4.01 per cent. Yields usually drop when investors are jittery, so this week’s moves have offered reassurance.
The value of the US dollar also steadied after tumbling last week, raising more worries that Trump’s trade war also may be undermining its status as a safe-haven investment.
Palantir Technologies climbed 6.2 per cent for a second day of gains after NATO said it would use the company’s artificial-intelligence capabilities in its allied command operations.
In other dealings early Wednesday, US benchmark crude oil bounced back from early losses, gaining 45 cents to USD 61.78 per barrel, while Brent crude, the international standard, picked up 49 cents to USD 65.16 per barrel.
Trump’s tariffs have raised expectations that economies will slow, denting demand for oil and other resources.
The US dollar fell to 142.71 Japanese Yen from 143.24 Yen. The Euro rose to USD 1.1369 from USD 1.1283.
