Asia-Pacific markets exhibited a mixed performance on Monday, influenced by tariff uncertainty following U.S. President Donald Trump’s announcement over the weekend to raise global tariffs from 10% to 15%. The action followed a U.S. Supreme Court ruling that invalidated a significant portion of the president’s trade strategy implemented under the International Emergency Economic Powers Act of 1977, or IEEPA. U.S. trading partners are not exempt from scrutiny, noted Claudio Galimberti. “While the Supreme Court’s ruling invalidates a large share of existing tariffs and weakens the ability to target individual countries, it does not dismantle the broader tariff framework,” he wrote in a note following the announcement. Galimberti added, “If the upper tariff limit is reached without prior IEEPA exemptions, the average rate could climb even higher than under the structure the Supreme Court just struck down.”
South Korea’s Kospi experienced an increase for the third consecutive session, reaching a new record high before reducing its gains to finish at 5,846. The small-cap Kosdaq experienced a decline of 0.17%, concluding the trading day at 1,151.99. Australia’s S&P/ASX 200 declined by 0.61% to 9,026. Hong Kong’s Hang Seng index surged by more than 2%. Markets in China and Japan were closed for a holiday. Bitcoin experienced a decline of over 3%, dropping below $65,000 following the announcement by U.S. President Donald Trump regarding plans to increase global tariffs to 15%. “The move lower in bitcoin looks less like a crypto‑specific shock and more like a classic risk‑sentiment reset,” said Christopher Hamilton. “Bitcoin has become increasingly sensitive to global liquidity conditions. When markets reprice growth, inflation or policy risks as we’re currently seeing with tariffs, bitcoin often acts as a high‑beta expression of risk rather than a defensive asset.”
Oil prices were last observed trading lower, negating previous gains. International benchmark Brent crude futures declined by 0.6%, settling at $71.33 a barrel, while U.S. West Texas Intermediate futures dropped 0.78% to $65.96. “The Supreme Court ruling is a setback … but it is not an end to his policy agenda,” stated Arthur Laffer. Laffer stated that nations like Vietnam and India, which have entered into trade agreements with the U.S., ought to reconsider any moves to distance themselves from these pacts. He emphasized that trade is a fundamental aspect of Trump’s political and economic approach and suggested that the president is expected to continue advocating for this matter.
On Friday, U.S. stocks experienced an uptick following the Supreme Court ruling, which may offer relief to companies facing increased costs from the duties and alleviating worries about persistent inflation that continues to affect the U.S. economy. The S&P 500 advanced 0.69% and closed at 6,909.51, while the Nasdaq Composite gained 0.9% and settled at 22,886.07. The Dow Jones Industrial Average increased by 230.81 points, representing a rise of 0.47%, concluding the day at 49,625.97. The 30-stock index rebounded from a 200-point loss earlier in the session, following disappointing economic data.