Trade Tensions Rock Asian Markets After U.S. Targets Nvidia

Shares in China and Hong Kong fell following U.S. restrictions on Nvidia chip sales to China. This move heightened trade war concerns, overshadowing strong economic growth data. Tech stocks took a hit, while uncertainties about tariffs on critical sectors loomed large over investor sentiment.

In a significant market reaction, Chinese and Hong Kong stocks saw declines on Wednesday after the United States imposed new restrictions on Nvidia chip exports to China, reigniting trade war fears.

The market downturn comes even as China reported better-than-expected economic growth, driven by robust consumption and industrial output, yet investors remain wary of potential U.S. tariff impacts.

Nvidia, a prominent player in the AI chip market, faces challenges as the U.S. uses trade negotiations to limit China's economic influence, affecting tech stocks and raising uncertainty among investors and corporations.

(With inputs from agencies.)