U.S. Court Blocks Trump Tariffs, Stimulating Asian Markets

Investor sentiment improved as a U.S. federal court halted President Trump's broad tariffs, lifting Asian shares and Wall Street futures. The decision, now under appeal, bolstered risk assets, amidst mixed news on U.S.-China tech relations. The Federal Reserve's rate cut remains uncertain, while commodity prices reflect global economic dynamics.

In a significant development, a U.S. federal court has temporarily halted the imposition of President Donald Trump's 'Liberation Day' tariffs, which were set to affect nations running trade surpluses with the U.S. The court ruled that Trump overstepped his authority, causing ripples in financial markets worldwide.

Following the court's ruling, Asian shares surged as investors embraced riskier assets. Japan's Nikkei and South Korea's stock indices showed notable gains, while futures for major U.S. indices such as the S&P 500 and Nasdaq climbed in anticipation of potential policy reconsiderations by the White House.

Amid mixed signals on U.S.-China tech exchanges, where the U.S. restricted semiconductor and other tech sales to China, investors remain cautious. Recent Federal Reserve minutes suggest hesitance around immediate rate cuts, emphasizing persistent inflation risks linked to tariff uncertainties. Commodity markets are also responding, with movements in oil and gold reflecting ongoing geopolitical tensions.

(With inputs from agencies.)