Asian equities moved higher as investors responded directly to a US Supreme Court ruling that invalidated much of the current administration’s tariff programme. The decision removed a significant legal pillar supporting a range of import duties introduced under emergency powers, prompting a reassessment of trade related risk across export focused economies.
Regional indices advanced, with particular strength in technology heavy markets where semiconductor and electronics manufacturers dominate index weightings. These sectors are highly sensitive to cross border cost structures and demand visibility. By undermining the legal basis for certain tariffs, the court has reduced the probability of abrupt increases in input costs or retaliatory measures in the near term.
The US administration has indicated it will seek alternative legal routes to maintain elements of its trade agenda. That response limits the scope for complacency. While the ruling lowers one category of risk, it introduces another layer of timing uncertainty as policymakers explore new mechanisms. Markets are therefore pricing in a partial easing of pressure rather than a definitive shift in trade policy.
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