Investing.com-- Most Asian stocks retreated on Wednesday as persistent uncertainty over U.S. trade tariffs left investors wary of risk-driven markets, while technology shares were rattled by a warning from AI major Nvidia.

Hong Kong-listed Chinese internet stocks were the worst performers in the region, as more U.S. controls on chip exports to China raised questions over their artificial intelligence prospects.

Investors largely looked past stronger-than-expected gross domestic product data for the first quarter. GDP data for the coming quarters is expected to reflect the impact of a bitter trade war with the United States.

Broader regional markets took a weak lead-in from Wall Street, which closed slightly lower on Tuesday as trade and economic uncertainty remained in play. U.S. stock index futures slid in Asian trade, with NQM25 dropping 1.4% after Nvidia’s warning.

Asia tech pressured by Nvidia warning; Hong Kong slides

Tech-heavy Asian indexes, especially those with exposure to chipmaking, retreated on Wednesday after market major NVIDIA Corporation (NASDAQ: NVDA ) flagged a $5.5 billion charge on its first-quarter earnings from new U.S. controls on AI chip exports to China.

Japan’s Nikkei 225 shed 0.7%, South Korea’s KOSPI lost 0.7%, while Taiwan’s Taiwan Weighted index slid 1.7%.

Nvidia suppliers TSMC (TW: 2330 ), SK Hynix Inc (KS: 000660 ), and Advantest Corp. (TYO: 6857 ), slid between 2.7% and 5.4%, while broader chipmaking and tech stocks also retreated.

China’s internet giants were the worst-hit by this trend, given that the new U.S. controls stand to largely cut off local players from access to Nvidia’s AI chips. Nvidia said the export controls were tied to its H20 chip, which it had developed specifically for Chinese markets.

Baidu (HK: 9888 ), Alibaba (HK: 9988 ), and Tencent Holdings Ltd (HK: 0700 )- which are major buyers of the H20- sank between 2% and 5%, dragging Hong Kong’s Hang Seng index down 2.2%.

Losses in tech largely offset positive Chinese GDP data.

Chinese stocks fall past positive Q1 GDP as trade war impact looms

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes lost about 0.6% each, falling mostly in line with their Asian peers.

GDP data showed China’s economy grew 5.4% year-on-year in Q1, more than expectations of 5.2%. Quarter-on-quarter GDP growth was at 1.2%, slightly missing expectations of 1.4%.

The strong GDP print came following a slew of aggressive measures from Beijing through late-2024, as the government moved to shore up local economic growth.

But the GDP print belied potential headwinds for China from a bitter trade war with the U.S., which is likely to weigh on growth in the coming quarters. U.S. President Donald Trump imposed a cumulative 145% tariff on China, drawing retaliatory levies of 125% from Beijing.

The increased trade tariffs are expected to pressure China’s exports and potentially dent growth. But Beijing is also expected to ramp up its stimulus measures to offset trade-related headwinds.

Broader Asian stocks- at least those with limited tech exposure- were positive. Australia’s ASX 200 rose 0.2%, benefiting from plays into cyclical stocks, particularly banks. Singapore’s Straits Times index also added 0.3% on strength in major lending stocks.

Futures for India’s Nifty 50 index pointed to a flat open, although the Nifty rallied about 2% on Tuesday after Indian consumer inflation read softer-than-expected for March.