Asian stock markets experienced a significant spike after a US court blocked the use of emergency powers by President Trump to impose tariffs.
Court's Decision and Implications
The three-judge panel ruled that the 1977 International Emergency Economic Powers Act does not authorize the imposition of tariffs. This decision, delivered late Wednesday, supported several lawsuits claiming Trump exceeded his authority. The White House appealed, but it's unclear whether the administration will freeze the contested tariffs during the appeal process.
Asian Markets Respond to News
Asian markets reacted positively to the court's ruling. Japan's Nikkei 225 surged by 1.5% to 38,263.36. Reports indicated that Tokyo had been urging Washington to scrap higher duties on Japanese products. South Korea's Kospi climbed 1.4% to 2,707.77 following a cut in the key interest rate by the Bank of Korea.
Financial Performance and Economic Context
In the US stock markets, indices also showed positive changes, with S&P 500 futures climbing 1.6%. Major stock indices in New York had eased before the court's decision, but rebounded strongly afterward. Meanwhile, the yield on 10-year Treasury notes rose to 4.47%. The news also led to an increase in oil prices.
The court's decision significantly impacted both stock and currency markets, boosting investor optimism in both Asia and the United States and highlighting the importance of the judicial system in economic matters.
