Stock markets across the Asia-Pacific region advanced on Thursday, buoyed by a landmark decision from a U.S. federal court that found President Donald Trump had overstepped his authority when imposing reciprocal tariffs back in April.
The Shanghai Composite rose 0.71% in the morning session, while Hong Kong’s Hang Seng Index increased 0.17%. South Korean Kospi climbed 1.44% after the Bank of Korea lowered its benchmark interest rate from 2.75% to 2.5%—the lowest level the country has seen since August 2022.
Japan’s Nikkei 225 jumped 1.49%, while the Australian ASX 200 edged up 0.15%.
On Wednesday, a U.S. federal court ruled that President Donald Trump overstepped his executive powers with the imposition of reciprocal tariffs, striking at a central pillar of his economic policy agenda.
In their decision, the judges determined that the 1977 International Emergency Economic Powers Act (IEEPA)—the statute cited by Trump as legal grounds for his tariffs—does not authorize the president to impose such broad import duties, as enacted last month.
As a result, the court issued a sweeping remedy, ordering that the tariffs in question be vacated and permanently barred from enforcement.
Wall Street closed in the red overnight, as investors digested a fresh round of corporate earnings and minutes from the latest Federal Reserve meeting. The S&P 500 dropped 0.56% to finish at 5,888.55. Meanwhile, the Nasdaq Composite declined 0.51%, ending at 19,100.94, and the Dow Jones Industrial Average shed 244.95 points, or 0.58%, to close at 42,098.70.
U.S. stock futures rallied sharply late Wednesday, buoyed by a federal court’s decision to strike down President Donald Trump’s so-called “reciprocal” tariffs. The positive momentum further intensified following robust quarterly results from artificial intelligence giant Nvidia, which reinforced market optimism.
S&P 500 futures climbed 1.66%, while Dow Jones Industrial Average futures increased 533 points or 1.27% and the Nasdaq 100 futures jumped 2.11%, fueled by strong Nvidia’s earnings.
Separately, on Wednesday, members of the OPEC+ alliance resolved to maintain their existing oil production quotas. At the morning session of Asian markets on Thursday, the international benchmark Brent crude rose 1.20% to $65.68 per share, while the West Texas Intermediate gained 1.29% to $62.64 per share.
