Asian stocks surge after Court curbs Trump tariff powers

Asian stock markets mostly advanced on Monday and the dollar weakened after the US Supreme Court struck down a significant portion of President Donald Trump’s tariff policy, easing some concerns that had rattled the global economy last year.

Technology shares led the regional rally, continuing their strong performance this year as investors rotate away from Wall Street in search of relatively cheaper opportunities amid worries about stretched valuations in US equities.

The boost followed a ruling on Friday by the Supreme Court of the United States that the International Emergency Economic Powers Act did not authorize the president to impose sweeping tariffs introduced in April. The decision dealt a blow to Trump’s trade strategy.

In response, Trump pledged to introduce a new 10 percent global tariff under a different legal authority, later increasing the proposed rate to 15 percent. The rapid shift in policy added a fresh layer of uncertainty, with some calling for refunds of tariffs already collected and analysts warning that further legal battles are likely.

Rodrigo Catril of National Australia Bank said the ruling may have ended the use of one legal tool for tariffs, but it did not signal the end of Trump’s broader trade agenda. He cautioned that ongoing legal disputes and potential new measures could prolong uncertainty, which is typically negative for economic stability and markets.

The court decision also cast doubt on recently negotiated trade agreements. European leaders had been preparing to approve an EU-US trade deal, but the head of the European Parliament’s trade committee indicated legislative work may be paused pending legal clarification from Washington. Meanwhile, reports suggested Indian officials could delay a planned visit to the United States aimed at finalising an interim trade pact.

Despite the uncertainty, investors in Asia welcomed the ruling, viewing it as potentially beneficial for major exporters such as China and India. Hong Kong’s Hang Seng Index climbed more than two percent, with e-commerce giants Alibaba and JD.com rising over three percent.

Seoul’s market also reached a record high, driven by gains in chipmakers Samsung Electronics and SK hynix. Markets in Singapore, Wellington, Taipei and Manila posted gains, while Sydney edged lower. Tokyo and Shanghai remained closed for holidays.

The positive momentum followed gains on Wall Street, where tariff-related developments overshadowed data showing the US economy expanded more slowly than expected in the fourth quarter of 2025, partly due to an extended government shutdown.

Currency markets reflected the uncertainty, with the dollar falling against the yen, pound and euro. Oil prices declined more than one percent on hopes of progress toward an Iran nuclear agreement, easing concerns about potential US military action in the Middle East after Trump warned of possible consequences and increased military deployments in the region.

Around 0220 GMT, Hong Kong’s Hang Seng Index was up 2.5 percent at 27,066.21. The euro traded at $1.1823, the pound at $1.3517, and the dollar at 154.15 yen. West Texas Intermediate crude fell 1.3 percent to $65.63 per barrel, while Brent crude dropped 1.3 percent to $70.86 per barrel.