Asian Markets Dip Amid Uncertainty Over U.S. Tariff Ruling

Asian stocks mostly declined on Friday, as uncertainty loomed following a U.S. court ruling that blocked many of former President Donald Trump’s tariffs, casting doubt over future trade policy.

Japan’s Nikkei 225 fell 1.4% to 37,892.39, after Tokyo’s core inflation (excluding fresh food) rose to 3.6% in May—higher than expected—fueling speculation of a potential interest rate hike by the Bank of Japan.

Elsewhere in the region:

Australia’s ASX 200 was nearly flat, dipping less than 0.1% to 8,404.50
South Korea’s Kospi lost 0.6% to 2,703.64, ahead of next week’s presidential election
Hong Kong’s Hang Seng declined 1.4% to 23,235.94
Shanghai Composite shed 0.3% to 3,353.07

Wall Street, meanwhile, saw modest gains on Thursday:

S&P 500 rose 0.4% to 5,912.17
Dow Jones gained 117 points (0.3%) to 42,215.73
Nasdaq advanced 0.4% to 19,175.87

Markets had initially rallied after the U.S. Court of International Trade ruled that Trump’s use of the 1977 International Emergency Economic Powers Act did not authorize broad tariffs. While the decision raised hopes for easing trade tensions, the tariffs remain in effect during appeal proceedings. The court’s ruling excludes tariffs on steel, aluminum, and automobiles, which fall under separate legal provisions.

The Court of Appeals for the Federal Circuit later allowed the administration to continue collecting the contested tariffs while the appeal is underway.

Nvidia led Wall Street gains, surging 3.2% on strong quarterly results. In contrast, Best Buy fell 7.3% after cutting its full-year forecast, citing tariff-related uncertainty.

In the bond market, the 10-year U.S. Treasury yield fell to 4.43%, reflecting mixed economic data. Weekly jobless claims rose slightly, while revised data showed the U.S. economy contracted less than previously estimated in Q1.

Oil prices edged lower: