BANGKOK (AP) - Asian stocks mostly fell on Wednesday following a rare pause in trading on Wall Street and other global markets. U.S. futures and oil prices also took a downturn, reflecting a cautious sentiment among investors.

Shares of chip maker Nvidia dropped by 6.3% in after-hours trading after the U.S. government announced stricter controls on exports of certain computer chips meant for artificial intelligence applications. This development has raised concerns about the impact of regulatory changes on the tech sector.

In China, stocks led the regional declines despite the government reporting a robust 5.4% annual growth rate for the world's second-largest economy in the last quarter. Notably, this growth was underpinned by strong industrial production, retail sales, and exports. However, quarterly growth showed signs of slowing down, falling to 1.2% in January-March from 1.6% in the last quarter of 2024.

Hong Kong's Hang Seng Index recorded a significant drop of 2.5%, settling at 20,922.54, while the Shanghai Composite Index declined by 0.9% to 3,237.60. The uncertainty surrounding U.S.-China trade relations has led private economists to downgrade their forecasts. This shift in outlook followed President Donald Trump's recent announcement to raise tariffs on most imports from China to 145%, prompting retaliatory measures from China, which increased its tariffs on imports from the U.S. to 125%.

The potential impact of tariffs seems to be causing a change in business sentiment, as indicated by analysts from ANZ Research. They noted that the unpredictability stemming from Trump's tariff actions has influenced both sentiment and business activities. In Tokyo, the Nikkei 225 Index dropped by 0.9% to 22,948.18, while South Korea's Kospi fell 0.7% to 2,461.45. Conversely, the S&P/ASX 200 in Australia showed modest gains, rising 0.3% to 7,781.10.

On the previous day, U.S. stocks experienced a slight drift as the S&P 500 slid 0.2% to 5,396.63 and the Dow Jones Industrial Average fell 0.4% to 40,368.96. The Nasdaq composite edged down less than 0.1% to 16,823.17. Investors are closely monitoring developments regarding Trump's tariffs as they attempt to anticipate market movements.

In the bond market, there appeared to be a calming effect after the sudden fluctuations the previous week had shaken investor confidence in U.S. government bonds. The yield on the 10-year Treasury note remained steady at 4.33%, down from 4.38% late the prior Monday and significantly down from 4.48% at the end of the previous week. Yields typically decrease during periods of investor anxiety, suggesting that this week's stability may provide some reassurance.

The U.S. dollar also stabilized after a decline last week, which had raised concerns about the currency’s status as a safe-haven investment during times of geopolitical uncertainty. The dollar fell to 142.61 Japanese yen from 143.24 yen, while the euro gained ground, rising to $1.1336 from $1.1283.

In corporate developments, DaVita saw its stock decrease by 3% following the announcement of a ransomware attack that is affecting some operations. The healthcare company indicated that it is still investigating the attack and can’t determine the full impact at this time. On the other hand, Bank of America shares climbed by 3.6% as it reported stronger-than-expected quarterly profits. Most large U.S. banks have been reporting solid results, aided by their stock trading desks capitalizing on market volatility triggered by Trump's tariff strategies. Citigroup also exceeded analysts' expectations, resulting in a 1.8% increase in its stock price.

Palantir Technologies experienced a notable surge of 6.2% for the second consecutive day after NATO announced it will utilize the company’s artificial intelligence capabilities in its allied command operations. As for commodities, early Wednesday saw U.S. benchmark crude oil prices decrease by 19 cents to $61.14 per barrel, while Brent crude dropped 18 cents to $64.49 per barrel, reflecting reduced expectations for demand due to concerns over a potential global economic slowdown tied to tariff disputes.