Asian stock markets moved higher on Thursday after a U.S. court blocked President Donald Trump’s latest decision to impose tariffs on April 2, 2025. The decision calling the tariffs “invalid as contrary to law” improved investor sentiment, with global markets receiving a lift. This follows an up-and-down week in Asia last week, where Hong Kong’s Hang Seng rose slightly while China’s CSI300 went lower, reflecting caution in trade.
The US Court of International Trade ruled unanimously against an emergency declaration President Trump used to impose tariffs earlier this year. The Opinion: The panel of three judges, who were nominated by Presidents Trump, Obama, and Reagan, said that the administration had exceeded its legal authority. The White House indicated it would immediately appeal, a step that could prolong the ultimate resolution.
Markets responded quickly, nonetheless. Investors saw the court’s pushback as a sign that trade policy may now have to pass more legal scrutiny and less unpredictability. Japan’s Nikkei was up 1.2%, while South Korea’s KOSPI and Australia’s ASX each gained close to 1%. In Hong Kong, the Hang Seng Index gained 0.9 percent after a positive turnaround from earlier losses. But China’s blue-chip CSI300 posted only modest gains, mirroring persistent worries about domestic policy tightening and a slowing economy.
Gains were bolstered by historically strong earnings from U.S. tech giant Nvidia. The company’s bullish forecast sent tech stocks soaring around the world, with Nasdaq futures up 2 percent. Asian semiconductor and AI companies found favor, contributing strength to the region’s tech-heavy indexes.
In currency trading, the dollar strengthened in value against the yen, euro, and Swiss franc, an indication that traders were feeling more inclined to take risks. Yields on Treasuries nudged up modestly, in a sign of some mixed expectations about whether inflation and the Federal Reserve are preparing new rate moves. Analysts say that while averting the tariffs will help growth and ease recession fears, it may also serve to suppress future inflation — a key debate among Fed officials.
The timing of the court ruling is significant. The legal block by one of Canada’s three main parties could help to stall the initiative or force modification just as some of the world’s biggest economies, including China and the United States, are engaged in delicate trade and policy discussions. It also undermines the prospect for quick trade deals, since global partners may now wait for clearer indications from the United States.
Focus now turns to key U.S. economic indicators and central bank signals. Investors are awaiting the second estimate of U.S. GDP, weekly jobless claims, and remarks from Federal Reserve officials Barkin, Goolsbee, May, and Logan. In Europe, markets will also be watching for comments from Bank of England Governor Andrew Bailey, which may influence sentiment.
For now, the markets across Asia seem to be finding their equilibrium after weeks of unease. The court’s rejection of the April 2 tariffs has soothed some nerves, at least for now, by showing that there are limits to executive power over trade. Risk sentiment has also been on the mend, and legal uncertainty will likely discourage shock-and-awe policy swings, so it’s no wonder regional investors are guardedly optimistic.
