Hang Seng Index, Nifty 50, Kospi
Sunset scene of light trails speeding up at an intersection in Seoul’s Gangnam central business district in Seoul, South Korea
Mongkol Chuewong | An | Getty Images
Asia-Pacific markets will open higher on Monday, putting concerns aside after US President Donald Trump announced over the weekend that he would raise global tariffs from 10% to 15%.
The move comes on the heels of a Supreme Court decision striking down a broad swath of the president’s trade agenda enacted under the 1977 International Emergency Economic Powers Act (IEEPA).
However, U.S. trading partners are not off the hook, said Claudio Galimberti, chief economist at Rystad Energy.
“While the Supreme Court’s decision invalidates large portions of existing tariffs and weakens the ability to target individual countries, it does not eliminate the broader tariff framework,” he wrote in a note following the announcement. he wrote.
Galimberti added that if the tariff cap were reached without prior IEEPA exemptions, the average rate could rise even higher than the structure the Supreme Court just struck down.
of Australia S&P/ASX 200 It was up 0.17% in early trading.
Hong Kong futures Hang Seng index It was at 26,855, above its last close of 26,413.35.
Markets in China and Japan were closed for holidays.
Oil prices recently remained low, erasing previous gains. International comparison Brent Crude oil futures fell 0.6% to $71.33 per barrel, while U.S. West Texas Intermediate Futures were down 0.78% at $65.96.
“The Supreme Court’s decision is a setback … but it is not the end of its policy agenda,” said Arthur Laffer Jr., president of Laffer Tengler Investments.
Laffer argued that countries that have signed trade agreements with the United States, such as Vietnam and India, should think twice before stepping back from these agreements, that trade remains the main pillar of Trump’s political and economic strategy and that the president will probably continue to put pressure on this issue.
On Friday, US stocks rose after the Supreme Court decision; That provided potential relief for companies burdened by the higher costs of tariffs and eased concerns about sticky inflation still plaguing the U.S. economy.
S&P 500 It closed at 6,909.51 points, with an increase of 0.69%. Nasdaq Composite It increased by 0.9% to 22,886.07. Dow Jones Industrial Average It ended at 49,625.97, up 230.81 points or 0.47%. The 30-stock index rebounded from a 200-point loss early in the session on disappointing economic data.
— CNBC’s Sean Conlon and Pia Singh contributed to this report.
