US Sanctions Hit Hong Kong, Tech Stocks Tumble Amid Trade Tensions

Hong Kong shares declined as US restrictions on Nvidia chip sales heightened trade war concerns. Tech stocks suffered significant losses, while marginal gains were reported in Chinese shares due to favorable economic growth figures. Analysts anticipate these trade tensions will impact market sentiments and corporate growth forecasts.

Hong Kong's stock market experienced a notable decline on Wednesday, driven largely by a sharp drop in technology stocks following the United States' decision to restrict Nvidia chip sales to China. These developments reflect mounting fears of a worsening trade conflict.

The Hang Seng index fell by 1.9%, ending a six-day streak of gains, while the Hong Kong-listed technology sector saw a 3.7% loss. Meanwhile, China's blue-chip CSI 300 and the Shanghai Composite Index closed 0.3% higher after starting the day in the negative.

Chinese economic growth exceeded expectations, bolstered by consumer spending and industrial production. However, trade war tensions are expected to manifest in economic data next month. In response to the US tariff measures, Chinese authorities appointed a new trade negotiator amid concerns of an increasingly complex economic landscape.

(With inputs from agencies.)