By Stella Qiu
Sydney (Reuters) – Actions fell in Asia on Wednesday as Darling Nvidia (Nvda) took a blow from American friction on flea sales in China, highlighting the damage to come in a world trade war in Tit-For-Tat, while Gold reached a record and the dollar remained under pressure.
Data has shown that the Chinese economy increased by 5.4% in the first quarter compared to the previous year, beating expectations, although trade tensions with the United States have darkened the prospects.
At the end: April 15 at 4:00 p.m.
Overnight, President Donald Trump ordered an investigation into new potential prices on all imports of American critical minerals, in addition to exams on pharmaceutical imports and chips. Beijing continues to play Hardball, having ordered airlines to suspend Boeing deliveries.
Treasury yields were stable before a key speech by the president of the Federal Reserve Jerome Powell later during the day. The governor of the Fed, Christopher Waller, already seemed dominant and the expectation is that Powell echora the recent messages of his colleagues in the middle of the tariff chaos.
S&P 500 (ES = F) The term contracts dropped by 0.8% while the Nasdaq (Nq = f) The term contracts dropped by 1.4%. This was due to a 6% dive in NVIDIA shares in trading after opening hours, which erased a total of $ 160 billion in its market capitalization.
The chip giant faces $ 5.5 billion in fees after the US government has limited exports from its H20 artificial intelligence chip to China, a key market for one of its most popular chips.
“This disclosure is a clear sign that Nvidia now has massive restrictions and obstacles to sell to China,” said Daniel Ives, analyst at Wedbush Securities.
“The street will take this news with a clear nervousness worried that it is the first blows pulled in the technological battle between the United States and China and Beijing / XI will not only take this news and leave.”
Wednesday, the widest index of MSCI in Asia-Pacific outside Japan dropped by 0.9%, which made a sequence of four-day victories. The Nikkei in Japan slipped 0.5%.
Chinese crisits dropped by 0.6%, while Hang Seng from Hong Kong slipped 1.6%. The actions of Chinese semiconductors, however, gathered with Hua Hong Semi up 4% and Smic 1% higher.
“The two countries seem to believe that they have the upper hand, potentially extending the current impasse for the coming months,” said PGIM analysts fixed in a note to customers.
“China does not seem to have the intention of going from its current position on prices and rather considers the current commercial dynamics as an opportunity to make breakthroughs with countries that export to the United States”
The White House said Trump was ready to conclude a trade agreement with China, but that Beijing should take the first step.