Asian shares and Wall Street futures surged on Thursday following a U.S. federal court ruling that blocked President Donald Trump’s “Liberation Day” tariffs, which had been set to take effect on April 2. The Manhattan-based Court of International Trade determined Trump exceeded his authority by imposing these tariffs on imports, prompting a swift appeal from the White House, which could escalate to the Supreme Court.
Kyle Rodda, a senior analyst at Capital.com, noted that this ruling casts doubt on the constitutionality of the emergency powers Trump used to enforce the tariffs, suggesting that the power to impose tariffs belongs to Congress. The market reacted positively, with Japan’s Nikkei rising 1.7% and South Korean shares climbing to a nine-month high. MSCI’s Asia-Pacific index also increased by 0.5%, while European and U.S. futures showed gains, reflecting a broader global market optimism.
Despite this setback for Trump’s administration, Goldman Sachs analysts cautioned that the ruling doesn’t prevent sector-specific levies, leaving room for potential future tariffs. Investors welcomed the market relief, notably following strong earnings reports from Nvidia, which offset adverse news regarding U.S. technology sales to China.
In the wake of the court decision, the dollar strengthened against traditional safe havens, while yields on 10-year Treasuries rose, reducing expectations of a Federal Reserve rate cut. Commodities reflected mixed trends, with gold prices slipping slightly but oil prices climbing amid OPEC+ decisions and U.S. sanctions. Overall, the day marked a significant uplift in global financial markets, driven by developments in U.S. trade policy.
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