Asian shares saw mixed results on Friday as uncertainty loomed over the aftermath of a US court decision to block several of President Donald Trump’s tariffs. Japan’s Nikkei 225 fell by 1.1% amid government data showing higher-than-expected core inflation in Tokyo. This has led some analysts to speculate on a potential interest rate hike by the Bank of Japan.
Meanwhile, Australia’s S&P/ASX 200 rose by 0.3%, while South Korea’s Kospi declined by 0.9% ahead of an upcoming presidential election. Hong Kong’s Hang Seng and Shanghai Composite also saw losses on Friday.
On Wall Street, the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all posted gains on Thursday. However, the initial optimism following the US court ruling was short-lived as uncertainties remain regarding the future of the tariffs.
The ruling by the US Court of International Trade questioned the legality of Trump’s tariffs under the International Emergency Economic Powers Act. While the court’s decision raised hopes of a reprieve from the tariffs, the White House plans to appeal the ruling, leaving the outcome uncertain.
Tech stocks led the gains on Wall Street, with Nvidia exceeding analyst expectations for profit and revenue. Despite the positive performance, bond yields eased following mixed economic reports indicating a potential economic contraction in the US.
In energy trading, benchmark crude oil prices saw a slight decline, while currency trading saw the US dollar weakening against the Japanese yen and euro.
Overall, the financial markets continue to navigate uncertainties surrounding the tariff rulings and their impact on global trade. Investors remain cautious as they await further developments in the ongoing trade disputes.
