April 16, 2025 at 02:51 am EDT
(MT Newswires) -Australian shares closed the week flat with a negative tilt after technology giant Nvidia revealed new US export restrictions on its H20 artificial intelligence chips to China.
The S&P/ASX 200 Index was little changed to close at 7758.9.
Asian technology stocks fell as Nividia said the new rules will cost it around $5.5 billion in related charges during the first quarter, Bloomberg reported.
The move is "driven by concerns over China's rise in the electronics sector, and in that sense, it is likely to become a permanent policy," said Tomo Kinoshita, global market strategist at Invesco Asset Management.
However, analysts believe that this would lead to China accelerating its use of domestic chips.
"Domestic AI chips may not perform as well as Nvidia's H20, but that is missing the point. China has been able to develop innovative AI models despite US restrictions," Vey-Sern Ling, a managing director at Union Bancaire Privee added.
On the domestic front, Australian household consumption is at risk of slowing as a result of an anticipated weaker expansion of the US economy in the wake of global trade tensions, ANZ Research said in a note.
Australian banks may be affected by the trade war after all, contrary to an initial assessment that they would be spared, according to Citi Research analysts.
An economic activity indicator in Australia fell in March, weighed down by the impact of trade disruptions from US tariffs, and Westpac now expects growth to track a slower recovery, Westpac and the Melbourne Institute reported.
The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trends three to nine months into the future, fell to 0.6% in February from 0.9% in January, per the report.
In company news, Rio Tinto Groupreported 69.8 million tonnes of iron ore production at its Pilbara project in Western Australia in the first quarter, down 10% from the previous year, due to disruptions from four cyclones. Shares of the company fell 3% at market close.
Bank of Queensland reported Wednesday that its cash earnings per diluted share in the fiscal first half rose to AU$0.264 from AU$0.239 per diluted share a year earlier. Shares of the bank rose past 5% at market close.
Lastly, Zip said its cash earnings before tax, depreciation, and amortization (EBTDA) rose to AU$46 million in the fiscal third quarter ended March 31, up 219% from last year. Shares soared past 16% at market close.

Sumber : MT Newswires