China’s stock market fell on Wednesday, with major technology companies extending losses after the U.S. imposed new restrictions on semiconductor exports to the country, while South Korea’s stock market rose after some local companies were exempted from the restrictions.

China’s Shanghai Shenzhen CSI 300 index fell 1.6 percent and the Shanghai Composite index fell 1.4 percent. Shares of chip makers and companies in the sector fell the hardest after the U.S. imposed restrictions last week blocking Chinese companies’ access to some U.S.-made chips.

The White House on Tuesday announced some exceptions to the restrictions, mostly offshore companies with operations in China. However, the new restrictions appear to be taking a serious toll on the country’s ability to produce chips locally.

Losses in technology stocks spilled over to Hong Kong, where the Hang Seng Index fell 2.4% to a more than 11-year low. The market is also wary of possible supply chain disruptions as a result of U.S. actions, given China’s key role in electronics manufacturing.

In contrast, South Korea’s KOSPI index rose 0.3% after the US named 2 local companies that will be exempted from new restrictions against China.

Chip maker SK Hynix Inc (KS:000660) and technology conglomerate Samsung Electronics Co Ltd (KS:005930) will be allowed to import US-made chips for their factories in China. These 2 stocks rose 2.7% and 1%, respectively.

However, a significant interest rate hike by the Bank of Korea limited gains in local stocks as the lender seeks to further curb inflation and support its currency, the won.

Broad Asian indices were little changed amid caution ahead of a raft of important economic data due out this week. Chinese trade and inflation data due out this week should shed light on a potential recovery in Asia’s largest economy.

U.S. inflation data today and tomorrow will factor in the Federal Reserve’s plans to raise the interest rate and is likely to cause a strong reaction in the market.

Investors will also be watching for more hawkish signals from the minutes of the Fed’s September meeting, which will be released a little later on Wednesday.

The Fed’s hawkish stance has weighed heavily on Asian indices this year as interest rate hikes have made risky assets less attractive.